S&P 500: Summer Correction Risk?
- Growing fears of a recession and reduced consumer spending may be influencing hedge fund managers, as consumer and lifestyle stocks feature prominently in the latest list of most...
- Hazeltree, a technology and data provider, released its Shortside Crowdedness Report for May 2025, detailing the most shorted stocks.
- The economy experienced a 0.3% decrease in gross domestic product in the first quarter, compounded by tariff uncertainties.
The S&P 500 faces potential headwinds, as indicated by its appearance on the list of most shorted stocks for the second consecutive month. This points to growing skepticism about market valuation, alongside increased concerns about a potential economic slowdown. In May, Live Nation and Chevron top the list of most shorted large-cap stocks, while tech stocks such as IBM, Synopsys, and Dell also attract significant short interest. Hazeltree’s latest report highlights how fund managers are positioning themselves amidst fears of reduced consumer spending. Crypto mining firm MARA Holdings shows high institutional supply utilization. News Directory 3 is closely following the latest market trends. Discover what’s next for the S&P 500.
Live Nation, S&P 500 Among May’s Most Shorted Stocks
Updated June 6, 2025
Growing fears of a recession and reduced consumer spending may be influencing hedge fund managers, as consumer and lifestyle stocks feature prominently in the latest list of most shorted stocks. The S&P 500 also appears, suggesting continued skepticism about market valuation.
Hazeltree, a technology and data provider, released its Shortside Crowdedness Report for May 2025, detailing the most shorted stocks. The report suggests fund managers are eyeing potential headwinds for companies they believe are overvalued.
The economy experienced a 0.3% decrease in gross domestic product in the first quarter, compounded by tariff uncertainties.
Among large-cap stocks, event promoter Live Nation (NYSE:) and Chevron (NYSE:) share the top spot with a crowdedness score of 99 out of 100. Super Micro Computer (NASDAQ:), a server and data storage manufacturer, followed closely with a score of 97 and a high institutional supply utilization rate of 48%.
Marriott (NASDAQ:) and Charter Communications (NASDAQ:) also ranked high, with scores of 91, indicating significant short interest in consumer-related businesses. Technology stocks such as IBM (NYSE:), Synopsys (NASDAQ:), Dell (NYSE:), and CrowdStrike (NASDAQ:) also made the top 10.
The SPDR S&P 500 ETF (NYSE:) appears on the list for the second month, hinting at expectations of a market correction.
In the midcap category, Albemarle (NYSE:), a lithium producer, leads with a score of 99. Crypto mining stock MARA Holdings (NASDAQ:) also appears, boasting a high institutional supply utilization rate of 72.5%.
“We witnessed an extension of consumer spending taking root across the globe as major lifestyle brands shot too the top of Hazeltree’s most crowded shorts across companies focused on entertainment, energy, fashion, travel, electronics, and more,” Tim Smith, managing director of data insights at Hazeltree, said. “In the Americas, we also noticed large-cap stocks turning back toward tech, with five out of the most crowded shorts from four in April.”
Kohl’s (NYSE:) is the most shorted small-cap stock, while PureCycle Technologies (NASDAQ:) has the highest institutional supply utilization rate at 83.5%.
What’s next
Investors will be watching upcoming economic data and company earnings reports to gauge whether the trends identified in the Shortside Crowdedness Report continue. Changes in consumer spending and the broader economic outlook will likely influence future short positions.