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  Texas big game hunter killed while stalking African Cape buffalo : NPR
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

91 Pet Peeves List That May Drive You Crazy

Pet peeves are those little things that can drive us crazy, even if they seem…

June 5, 2025

HHS Nominee RFK Jr. In The Hot Seat At First Confirmation Hearing

This week, the spotlight is on Robert F. Kennedy Jr. as he faces his first…

January 29, 2025

Rumeysa Ozturk, a Tufts Student, Is Detained by ICE

An international student enrolled in a graduate program at Tufts University found herself in federal…

March 26, 2025

Trump’s TOP 5 AMFEST Speech Moments |

The 2024 AmFest in Phoenix, Arizona was a momentous occasion as former President Donald Trump…

December 23, 2024

Elections in Venezuela: Manuel Rosales after defeat asserts “We will persist on the electoral path with truth and unity, rejecting abstention and sanctions”.

On May 26, 2025, former Zulia state governor Manuel Rosales made a resolute declaration to…

May 29, 2025

You Might Also Like

3 Must-Buy Stocks Fueling the Data Center Surge
Economy

3 Must-Buy Stocks Fueling the Data Center Surge

October 31, 2025
Trump Takes Credit for Nobel Prize in Physics After Losing Top Honor
Celebrities

Trump Takes Credit for Nobel Prize in Physics After Losing Top Honor

October 31, 2025
Shake Shack returns to profit in Q3 2025
Economy

Shake Shack returns to profit in Q3 2025

October 31, 2025
Fresnillo signs agreement to acquire Probe Gold for 8m
Economy

Fresnillo signs agreement to acquire Probe Gold for $558m

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?