Nasdaq Announces End of Month Open Short Interest Positions in Nasdaq Stocks as of Settlement Date March 28, 2024
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Insights
The reported increase in short interest across Nasdaq-listed securities may signal a collective market sentiment of cautiousness or pessimism among investors. Short selling, the practice of selling securities that traders do not own, is often used as a hedge against anticipated price declines or as a speculative position. The slight uptick in short interest, from 11,183,649,858 to 11,297,406,980 shares, suggests that more investors are expecting prices to fall in the near future.
However, it's important to note that short interest is just one indicator and doesn't always predict market movements accurately. The data shows a marginal increase in the average days to cover short positions, from 2.75 to 2.78 days for the Global Market and 1.18 to 1.32 days for the Capital Market. This indicates that while there may be a growing bearish sentiment, it is not a drastic change. Stakeholders should consider this information in the context of broader market trends and other economic indicators.
From a financial perspective, the reported short interest figures can impact individual stock prices and can sometimes be a precursor to volatility. As short sellers eventually need to buy back shares to cover their positions, high short interest can lead to a short squeeze, where the price of a stock rises sharply as short sellers rush to cover their positions. This is a scenario that traders and investors may watch closely.
It's also worth mentioning that short interest can serve as a contrarian indicator; extreme levels of short interest may imply that a price bottom is near as everyone who wanted to sell has already done so. The current levels, however, do not suggest extreme bearishness but rather a moderate increase in short positions. Investors should analyze company fundamentals and market conditions in tandem with short interest data to make informed decisions.
The slight increase in short interest across Nasdaq securities could reflect broader economic concerns. For instance, investors might be reacting to macroeconomic factors such as rising interest rates, inflation, or geopolitical tensions. Short interest can sometimes be an early warning system for economic downturns, as it may indicate that investors are hedging against potential declines in stock prices due to anticipated economic slowdowns.
On the flip side, an increase in short interest can also result in additional liquidity in the market, as short selling involves borrowing and selling shares. It's essential for stakeholders to monitor economic news and policy changes that could affect investor sentiment and, subsequently, short interest levels. This data should be part of a larger toolkit used to gauge the economic outlook.
NEW YORK, April 09, 2024 (GLOBE NEWSWIRE) -- At the end of the settlement date of March 28, 2024, short interest in 3,102 Nasdaq Global MarketSM securities totaled 11,297,406,980 shares compared with 11,183,649,858 shares in 3,114 Global Market issues reported for the prior settlement date of March 15, 2024. The end of March short interest represents 2.78 days average daily Nasdaq Global Market share volume for the reporting period, compared with 2.75 days for the prior reporting period.
Short interest in 1,721 securities on The Nasdaq Capital MarketSM totaled 1,885,416,236 shares at the end of the settlement date of March 28, 2024 compared with 1,838,055,964 shares in 1,731 securities for the previous reporting period. This represents a 1.32 day average daily volume; the previous reporting period’s figure was 1.18.
In summary, short interest in all 4,823 Nasdaq® securities totaled 13,182,823,216 shares at the March 28, 2024 settlement date, compared with 4,845 issues and 13,021,705,822 shares at the end of the previous reporting period. This is 2.40 days average daily volume, compared with an average of 2.31 days for the previous reporting period.
The open short interest positions reported for each Nasdaq security reflect the total number of shares sold short by all broker/dealers regardless of their exchange affiliations. A short sale is generally understood to mean the sale of a security that the seller does not own or any sale that is consummated by the delivery of a security borrowed by or for the account of the seller.
For more information on Nasdaq Short interest positions, including publication dates, visit http://www.nasdaq.com/quotes/short-interest.aspx or http://www.nasdaqtrader.com/asp/short_interest.asp.
About Nasdaq:
Nasdaq (Nasdaq: NDAQ) is a leading global technology company serving corporate clients, investment managers, banks, brokers, and exchange operators as they navigate and interact with the global capital markets and the broader financial system. We aspire to deliver world-leading platforms that improve the liquidity, transparency, and integrity of the global economy. Our diverse offering of data, analytics, software, exchange capabilities, and client-centric services enables clients to optimize and execute their business vision with confidence. To learn more about the company, technology solutions, and career opportunities, visit us on LinkedIn, on X @Nasdaq, or at www.nasdaq.com.
Media Contact:
Camille Stafford
camille.stafford@nasdaq.com
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/aaf5d469-e8e7-4289-a644-cb29ff0b5306
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FAQ
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