S&P 500 short interest rises to highest level since 2009

Short interest in the median S&P 500 stock has reportedly climbed to about 3.2% of market capitalization, the highest level since 2009 and approaching the roughly 3.8% peak seen during the 2008 financial crisis.
By comparison, the same measure was around 1.7% during the 2022 bear market.
Among the most heavily shorted 10% of S&P 500 stocks, short interest has risen to approximately 8% of market cap, the highest level in eight years.
The buildup suggests bearish positioning is becoming increasingly crowded, which raises downside risk if fundamentals weaken but also increases the potential for sharp short-covering rallies if markets move against those positions.