Nasdaq Reports 2% Rise in Mid-August Short Interest

Nasdaq reported an increase in short interest across its securities as of the August 15, 2025 settlement date, with total short interest rising to approximately 16.93 billion shares from 16.59 billion shares at the end of July. Short interest in the Nasdaq Global Market reached nearly 14 billion shares, representing 2.34 days of average daily volume, up from 2.15 days previously, while the Nasdaq Capital Market short interest remained steady at around 3 billion shares with 1.00 day of average daily volume. This increase in short interest, a practice where investors borrow and sell shares expecting prices to decline or for hedging purposes, indicates a cautious or bearish sentiment among investors. The rise in short interest may reflect broader market concerns or specific company developments, signaling potential market shifts or corrections. Meanwhile, the New York Stock Exchange also experienced a 3.1% rise in short interest during the same period, underscoring a wider trend of increased short selling activity. These data points are important for analysts and investors to monitor as they provide insight into market sentiment and risk management strategies.