‘Unloved’ Stocks Rally Is Luring Some Big Buyers Off Sidelines

Fast-money investors are edging their way back into US stocks after sitting out a furious rally, bolstering the case for equities to extend their advance further into uncharted territory.

A BNP Paribas measure of equity positioning among investors including commodity-trading advisors, volatility-target funds and hedge funds has been steadily rising and now sits at just above neutral. That follows a monthslong rally that saw the S&P 500 Index rebound to new highs from the precipice of a bear market. The last time institutions were this light on stocks in the midst of a sharp recovery was in 2023, according to the bank.