Hedge funds and large speculators have increased their bearish positions on U.S. equities, particularly targeting small-cap stocks amid concerns over economic resilience and ongoing global trade tensions. According to the Commodity Futures Trading Commission (CFTC) weekly positioning data for the week ending July 1, 2025, fund managers raised their net long positions in S&P 500 futures by 3,352 contracts to 844,576, while speculators increased net short positions by 29,824 contracts to 298,864. Large speculators' net short futures positioning on the S&P 500 remains near levels last seen in early 2024. In the Russell 2000 index, hedge funds have ramped up short positions to approximately $16 billion, approaching highs not seen since 2021. This shift follows a strong rally in small-cap stocks since April but reflects concerns about trade risks, high interest rates, and stretched valuations. In the energy sector, money managers increased their net long positions in WTI crude oil futures and options by 11,521 contracts to 178,100, with long-only positions rising by 12,531 and short-only positions falling by 1,010. Treasury futures also saw increased net short positions across various maturities, including 30-year bonds, ultrabonds, 10-year notes, and 5-year notes, indicating a broader cautious stance among market participants.