Hedge Funds Record £98.76B Short Bets Amid Market Turmoil

US markets are experiencing significant turmoil, with the S&P 500 plunging over 10% in just five days, and the Dow Jones Industrial Average and Nasdaq Composite also facing steep declines. This drop is largely attributed to President Trump's newly announced tariffs on China, which have ignited fears of a global trade war and increased recession risks. Hedge funds have reacted by massively increasing short positions against stocks, marking record levels of short selling as they seek to protect their investments amid the market chaos. The bond market is also feeling the strain, with Treasury yields soaring as investors flee to cash, indicating widespread risk aversion. Analysts warn that the recent market conditions could lead to further declines, with many experts urging investors to remain calm. The overall market sentiment remains bleak, with predictions of continued volatility and potential long-term impacts on the economy.