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Shock Rally Sweeps Markets in Rebuke to Overconfident Bears

  • A basket of most-shorted stocks rallies 11%, most since 2020
  • Two-year Treasuries jump after record shorts from hedge funds
Bloomberg business news
Too Soon to Ring 'All Clear Bell' for Stocks: Crossmark

Investors were fleeing, the cryptosphere was crashing, and a monthly report that has been a disaster for traders all year was on tap. Then came Thursday’s session in stocks and bonds, the most violent repudiation bears have suffered across asset classes in more than a decade.

Bonds rose, torching bets against them placed in droves by hedge funds. Credit had its best day in two years, while stocks surged past three different key technical levels and the year-to-date loss in the Dow Jones Industrial average narrowed to less than 8% from more than 20% just six weeks ago.