Lates News

The bearish sentiment on US small cap stocks has risen to the highest level since 2017, with non-commercial short positions in Russell 2000 Index futures exceeding $16 billion this month, doubling since May and increasing further after the latest signs of weakness in the US job market data. While S&P 500 Index and Nasdaq 100 Index are trading near historical highs, small cap stocks are once again significantly lagging behind. Since 2025, the Russell 2000 Index has dropped by 0.5%, while the other two benchmark indices have risen by approximately 9% and 12%, respectively. Although short positions can be seen as reflecting bearish sentiment on the outlook for growth beyond the US economy and the artificial intelligence boom, it also means that if these concerns do not materialize and investors begin to unwind their bearish positions, there is upside potential in the market.