Traders bet on strong recovery of US stock market — Bloomberg

According to Bloomberg, traders are no longer hedging against a potential drop in the S&P 500 index, betting instead on a rapid recovery after last month's slump. The agency notes that “greed has gripped the markets”, replacing previous fears.

The sudden shift in investor sentiment stems from easing trade tensions following the agreement between the United States and China to reduce mutual import tariffs. In addition, market fears about higher US inflation failed to materialize. Recently published data on consumer and producer price growth in the country were below experts' expectations, Bloomberg reports.

The current traders' behavior signals their rising confidence in the US stock market's recovery. However, it remains unclear whether this optimism will last. As Amy Wu Silverman of RBC Capital Markets observes, investors remain more afraid of missing gains than bracing for potential losses.