Stock Rally Leaves Options Traders Readying for a Tech Rebound
Traders work on the floor of the New York Stock Exchange.
Photographer: Michael Nagle/BloombergA dramatic shift is underway in US equity markets. Stocks hit an all-time high Wednesday as Middle East peace hopes tamped down geopolitical anxiety, and derivatives traders who had pulled back from bullish bets are now racing to position for further gains in technology shares.
Wall Street is bracing for another runup after a bout of selling left hedge funds underexposed ahead of an incoming wave of earnings and shifting sentiment in derivatives. Bullish positioning is showing up in the tech-laden Nasdaq 100, now in the middle of its longest winning streak since 2019, as traders ready to chase a further climb through the options markets.