The expectation of a Fed rate cut collapsed, "smart money" continues to short the stock market

Hedge funds have been net selling global stocks for two consecutive weeks, mainly driven by short selling. The non-essential consumer goods sector is the most affected. According to customer data from Bank of America, hedge funds have been selling stocks for five consecutive weeks. Investors are reassessing the Fed's interest rate cut path. Market expectations for the number of interest rate cuts this year have decreased, leading investors to reassess the stock market outlook. The Dow Jones Industrial Average and the S&P 500 Index fell last week. The upward momentum of US stocks this week will face a key test, including inflation data and corporate earnings reports