Trade War Spurs Massive Profits for Short Sellers Amid U.S. Stock Market Decline

According to Odaily, the escalating trade war has led to a significant downturn in the U.S. stock market, with a decline exceeding 10%. Traders betting on falling stock prices have gained $159 billion in just six trading days. Data from S3 Partners LLC indicates that since U.S. President Donald Trump announced comprehensive tariffs, the U.S. stock market has experienced its largest drop since 2022. Shorting the ETF tracking the S&P 500 index (SPY) has emerged as the most profitable short bet during this period. Ihor Dusaniwsky, Managing Director of Predictive Analytics at S3, noted that short sellers have benefited across all sectors during this market correction, with 81% of short trades being profitable, and 97% of short positions yielding gains in monetary terms.