Friday, 31 Oct 2025
  • Contact
  • Privacy Policy
  • Terms & Conditions
  • DMCA
logo logo
  • World
  • Politics
  • Crime
  • Economy
  • Tech & Science
  • Sports
  • Entertainment
  • More
    • Education
    • Celebrities
    • Culture and Arts
    • Environment
    • Health and Wellness
    • Lifestyle
  • 🔥
  • Trump
  • VIDEO
  • House
  • White
  • ScienceAlert
  • Trumps
  • Watch
  • man
  • Health
  • Season
Font ResizerAa
American FocusAmerican Focus
Search
  • World
  • Politics
  • Crime
  • Economy
  • Tech & Science
  • Sports
  • Entertainment
  • More
    • Education
    • Celebrities
    • Culture and Arts
    • Environment
    • Health and Wellness
    • Lifestyle
Follow US
© 2024 americanfocus.online – All Rights Reserved.
American Focus > Blog > Economy > Credit a ‘short squeeze’ for the stock market’s big two-day bounce
Economy

Credit a ‘short squeeze’ for the stock market’s big two-day bounce

Last updated: April 23, 2025 9:15 am
Share
Credit a ‘short squeeze’ for the stock market’s big two-day bounce
SHARE

The recent surge in the stock market can be attributed to the frantic behavior of short sellers covering their losses. Hedge fund short sellers had increased their bearish wagers in response to the early April volatility caused by President Donald Trump’s tariff announcements. This led to a short squeeze, where short sellers were forced to buy back their borrowed stocks quickly as the market rallied.

The market rally was fueled by a combination of factors, including easing trade tensions and positive comments from Treasury Secretary Scott Bessent regarding potential trade deals with China. The Dow Jones Industrial Average saw a significant increase, with a 1,100-point surge at its highs, following a 1,000-point gain the previous day. The S&P 500 also experienced a 3.5% increase for the week.

President Trump’s reversal on Federal Reserve Chair Jerome Powell also contributed to the positive sentiment in the market. After previously criticizing Powell, Trump stated that he had no intention of firing him. However, the rally began to fade, with the Dow only up 500 points by midday Wednesday. This could be attributed to the short squeeze boost losing momentum.

According to Goldman Sachs’ John Flood, hedge funds have not transitioned from short covering to outright buying, indicating a lack of strong conviction behind the rally. Flood emphasized the importance of monitoring hedge fund activity and longer duration investors to determine the sustainability of the market rally.

Overall, the stock market’s recent rally has been driven by short covering and positive developments in trade negotiations. While the market saw significant gains, the lack of high conviction buying suggests caution among investors. It will be essential to monitor hedge fund activity and investor sentiment to assess the longevity of the current market trend.

See also  The One Big Beautiful Bill Is on Its Way to President Trump’s Desk – The White House
TAGGED:bigbounceCreditMarketsShortsqueezeStocktwoday
Share This Article
Twitter Email Copy Link Print
Previous Article Bats that walk backwards have developed unusual navigation strategy Bats that walk backwards have developed unusual navigation strategy
Next Article JD Vance Meets the Pope JD Vance Meets the Pope
Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Popular Posts

Emma Stone and Dave McCary’s Austin Estate Hits the Market for $26.5 Million

Emma Stone and Dave McCary are ready to part ways with their luxurious estate in…

May 21, 2025

Ancient society may have carved ‘sun stones’ to end volcanic winter

Stone plaques with sun motifs found on Bornholm island, DenmarkAntiquity Publications/John Lee, National Museum of…

January 16, 2025

Texas AG Asks Illinois Court to Enforce Arrest Warrants Against Democratic Lawmakers

This article was originally published by The Epoch Times: Texas AG Asks Illinois Court to…

August 12, 2025

RFK Jr., MAHA movement face stiff challenges as they take power

In a surprising turn of events, Louisiana Republican Bill Cassidy, a physician with experience treating…

February 9, 2025

Trump to resume sending weapons to Ukraine : NPR

To create a unique version of the provided article and integrate it into a WordPress…

July 8, 2025

You Might Also Like

Market analysts react to Trump-Xi meet
Economy

Market analysts react to Trump-Xi meet

October 31, 2025
29 truck carrier files Chapter 11
Economy

29 truck carrier files Chapter 11

October 31, 2025
Trust Government Statistics, Not Government
Economy

Trust Government Statistics, Not Government

October 31, 2025
Jefferies Raises BP Price Target to 420 GBp, Maintains Hold Rating
Economy

Jefferies Raises BP Price Target to 420 GBp, Maintains Hold Rating

October 31, 2025
logo logo
Facebook Twitter Youtube

About US


Explore global affairs, political insights, and linguistic origins. Stay informed with our comprehensive coverage of world news, politics, and Lifestyle.

Top Categories
  • Crime
  • Environment
  • Sports
  • Tech and Science
Usefull Links
  • Contact
  • Privacy Policy
  • Terms & Conditions
  • DMCA

© 2024 americanfocus.online –  All Rights Reserved.

Welcome Back!

Sign in to your account

Lost your password?