Short Sellers Cash In as U.S. Stock Market Plummets Amid Trade War Escalation

The escalating trade war between the U.S. and other countries has significantly impacted the U.S. stock market, leading to a 10% decline. Short sellers have capitalized on this downward trend, profiting an astounding $159 billion in just six trading days, according to data from S3 Partners LLC. These traders bet on falling stock prices by shorting the S&P 500 ETF (SPY), which has seen its largest drop since 2022. According to Ihor Dusaniwsky, Managing Director of Predictive Analytics at S3, short positions have yielded positive returns across all market sectors. Notably, an impressive 81% of short trades were profitable and 97% of these short positions resulted in monetary gains.