Citigroup strategists indicate that as the s&p 500 index continues to reach new highs, it is likely to achieve its largest annual gain since 2021, and short sellers in the usa stock market are losing their guard.

Chris Montagu wrote in a report, "Investor positioning in s&p 500 index futures is completely one-sided. The usa stock market has set new highs for the fourth consecutive week, and more and more short sellers are choosing to yield."

Interest in the usa stock market shows no signs of weakening this year. The s&p 500 index has soared 27% driven by the preference for technology stocks and usa assets, repeatedly setting record highs. Trump's election as president sparked hopes for tax cuts and deregulation, thus boosting the usa stock market.

In contrast, the european stoxx 50 index futures positions remain net put, with etf funds accelerating their outflow. Due to sluggish economic growth and corporate earnings, coupled with the unstable political prospects in France and Germany, investors are avoiding stocks in the region.