This week's rally is particularly encouraging for investors who like to invest in small-cap stocks. The Russell 2000 index, widely considered to be the small-cap index, is up about 3.8% for the week. This continues the momentum that’s been building for the last month, in which the index has climbed 15.7%. Small-cap stocks are particularly sensitive to interest rates. Many of these companies rely on debt for their operations, which means, in some cases, it would be harder for companies to absorb higher tarif ...

Group 1 - Super Micro Computer (SMCI) is currently the most heavily shorted stock in the S&P 500, with 17.5% of its float sold short [1] - The stock has experienced a significant price increase of 44% this week, attributed to a $20 billion partnership with DataVolt [2] - The current short interest could lead to a short squeeze, potentially driving the stock price higher if short sellers are forced to cover their positions [3] Group 2 - SMCI stock has tested resistance levels around $37 and $42.47 in recent months, indicating that it must maintain above these levels for the rally to continue [6] - The NASDAQ-100 index has broken above a key moving average, suggesting a potential upward trend that could benefit SMCI [7] - The broader stock market is recovering, with $2 trillion flowing into equities, which may positively impact SMCI [8] Group 3 - SMCI received an 'Outperform' rating from Raymond James with a price target of $41, and a 'Buy' rating from Loop Capital with a price target of $70, indicating positive analyst sentiment [9]

Core Viewpoint - Lucid stock (NASDAQ: LCID) is experiencing increased short-selling activity, with a potential for a short squeeze due to high short interest and upcoming earnings call [1][6]. Short Selling Activity - As of April 30, 43.73% of LCID shares traded were sold short, up from 39.23% earlier in the week [1]. - The short interest is currently at 28.86% of the float, indicating significant bearish sentiment [4][6]. - The short interest ratio stands at 4.76 days, suggesting it would take a considerable amount of time to close out existing short positions [3][4]. Earnings Call Impact - The increase in short-selling activity may be linked to the upcoming earnings call scheduled for May 6 [4][6]. Stock Performance - As of May 1, Lucid stock was priced at $2.51, reflecting a 4.58% increase from a low of $2.40 the previous day [5]. - Despite promising year-over-year growth in Q1 production and delivery figures, the stock has not seen a significant upward movement [7]. Market Dynamics - Lucid's production processes are largely tariff-proof due to their location in the United States, although imported components may still affect profitability [7]. - Recent dips in Lucid stock were accompanied by strong volume and quick rebounds, indicating strong demand when shares are discounted [8]. - Given the current macroeconomic conditions, a significant upward movement and a short squeeze appear unlikely despite the concerning setup regarding days to cover and high short interest [8].

Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., April 22, 2025.A key force at the center of the stock market's massive two-day rally is the frantic behavior of short sellers covering their losses.Hedge fund short sellers recently added more bearish wagers in both single stocks and securities tied to macro developments after the whipsaw early April triggered by President Donald Trump's tariff rollout and abrupt 90-day pause, according to Goldman Sachs' prime brokerage ...