NEW YORK, April 8 (Reuters) - Short sellers targeting U.S. companies have gained $127 billion on paper from April 2 through Monday after President Donald Trump's plans for sweeping tariffs sparked a sharp selloff in stocks, according to data and analytics company Ortex Technologies.
The data, for U.S. companies with market capitalization $1 billion and greater, showed short sellers' gains for 2025 through Monday at $189 billion.
Short sellers aim to profit by selling borrowed shares and buying them back later at a lower price.
These bearish investors profited since April 2 as Trump's plans for extensive tariffs against U.S. trading partners set off a plunge of roughly $5 trillion in market value for the S&P 500 index.
Short interest for various stock indexes from around the globe increased rapidly from March 31 and peaked on April 4 before starting to drop, data from Ortex showed.
Falling short interest typically indicates investors growing less bearish as well as profit-taking.
"It seems fair to say that some short sellers seem to be looking to lock in their gains," Ortex cofounder Peter Hillerberg said.
On Tuesday, the S&P 500 was up 2.6% in late morning trade.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.