June turned out to be a breath of fresh air for the tech world. Short sellers pulled back sharply, pushing average short interest in the S&P 500's tech sector from 3.17% in May down to just 1.89% last month.
That shift lines up with a scorching run for tech stocks, which have climbed over nine percent so far this year—outpacing the broader market by a healthy margin.
Even names that usually draw heavy bearish bets—Enphase Energy ( ENPH), Super Micro Computer (SMCI, Financial) and First Solar (FSLR, Financial)—saw those wagers ease off. On the flip side, giants like Apple (AAPL, Financial), Microsoft (MSFT, Financial) and Nvidia (NVDA, Financial) barely registered on the short‑seller radar.
One curious twist: IT Services bucked the trend and actually saw a small uptick in bearish positioning. It shows that some slices of tech are still making traders nervous.
With bearish pressure retreating, the bulls have seized control for now. The real question is whether this newfound confidence will hold or if skeptics will pounce again once valuations start to look stretched.
