US Stock Short Bets Reach $1 Trillion, Investors Prioritize America, and Money Funds Grow as FOMO Takes Over.

Short bets against US stocks have hit $1 trillion, the highest since April 2022, despite paper losses on the positions exceeding $100 billion. This suggests that some traders believe the S&P 500's 14% rally in 2023 will run out of steam. However, building bearish sentiment can prove to be a source of support for the market, as shorts may need to buy back stocks to exit their positions, which could further boost equities. The individual equities with the highest short interest reflect a similar view that the AI-fueled tech rally may soon falter, with Tesla bears betting $26 billion against the stock this year.