Nasdaq-100 Slumps 5% as Traders Build Large Short Positions, Citi Warns of Downside Risk

According to Citi strategist David Chew, the Nasdaq-100 index tumbled nearly 5% last Friday, marking its largest single-day decline in 14 months. The decline only partially reset investor positions as traders continue to aggressively build short positions on U.S. equities. Meanwhile, bullish bets on the technology sector remain elevated, creating vulnerability to further downside, Chew's team noted in a report, adding that despite some improvement in the overall positioning landscape, the market faces near-term risks amid diverging fund flows.
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