The short positions in U.S. small-cap stocks hit a new high again.

The bearish sentiment on US small-cap stocks has risen to the highest level recorded since 2017, with the nominal value of non-commercial short positions in Russell 2000 index futures exceeding $16 billion this month. This position has doubled since May and has further increased after signs of weakness in the latest US job market data. While the S&P 500 index and the Nasdaq 100 index are trading near historic highs, small and mid-cap stocks are once again lagging behind. Since 2025, the Russell 2000 index has fallen 0.5%, while the other two benchmark indices have risen by approximately 9% and 12%. Although short positions can be seen as a reflection of bearish sentiment on the growth prospects outside of the US economy and the AI boom, it also means that if these concerns do not materialize and investors start to unwind their short positions, there is potential for upside in the market.