Stocks have rallied in recent months, with the
S&P 500
gaining about 16% since its low point in October, but some of the market’s best performers could now be at risk of short selling.
The Federal Reserve has been lifting interest rates in order to cool record-high inflation by reducing economic demand. Now, inflation is declining and markets are optimistic the Fed could stop its rate hikes soon—even if Friday’s stronger-than-expected jobs report throws some cold water on that narrative.
