Investors favor small caps post rate cut, causing shorts to lose

From Investing.com: 2024-09-24 03:46:59

Investors are increasing long positions after Federal Reserve rate cut, causing small-cap index shorts to suffer 5.7% losses. Volatility persists due to recent events, including Triple Witching. US market futures rally after FOMC rate cut, with ETF inflows and new long positions. European and Asian markets show mixed positioning trends.

Asia experienced large positioning shifts, with EM futures becoming heavily long and EAFE futures moving to second most extended short. Oil futures remain bearish but saw a bullish trend last week. Natural gas market is largely long after unwinding most short positions, resulting in 4.2% profit on average long positions.



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