Ceasefire agreement triggers largest short squeeze since 2020.

On April 8th, the S&P 500 index briefly rose by nearly 2.67%, marking the largest intraday gain since late March. This sharp rebound prompted hedge funds to quickly close out their short positions in US stocks at a speed unseen since the rebound from the plunge caused by the COVID-19 pandemic in March 2020. The trading desk at Goldman Sachs reported that hedge fund managers significantly accelerated their short covering of macro products on Tuesday night after US President Trump announced a temporary ceasefire agreement. Goldman Sachs stated that the scale of these closings is expected to reach levels seen at the beginning of the pandemic. Joe Gilbert, portfolio manager at Integrity Asset Management, stated, "This feels more like a relief rally than a sustainable uptrend. We believe that ultimately neither side will be satisfied, but as long as tensions ease, that is what the market is hoping for."