Investors Ramp Up Bets Against Stock Market as Summer Rally Fizzles

Investors are stepping up bets on a market downturn, a sign of waning sentiment that analysts say could presage a return to the volatile trading of the first half of 2022.

Net short positions against S&P 500 futures have grown in the past couple months, reaching levels not seen in two years. That means traders are increasing their bets that the index will fall, or at least hedging against that risk. Meanwhile, short interest has picked up in the fund tracking popular technology shares, whose recent declines have signaled that a strong summer rally is stalling out.