The strengthening of short positions combined with a weak labor market has caused the rebound momentum of the US stock market to hit a "freeze point."

According to CoinWorld, due to the fall of large cap AI-related stocks and traders analyzing data indicating further weakness in the labor market, the rebound in the US stock market has stalled. The S&P 500 index opened down 0.2%, led by declines in the technology and communication services zone. Nvidia has been the biggest drag on the index, as SoftBank sold its entire stake in the chipmaker to finance other AI investments, cashing out $5.83 billion, leading to a decline in Nvidia's stock price. According to Citi Research, investors have increased their bearish bets on the stock market over the past week, including a net increase of $3.75 billion in short positions in the Nasdaq. Analyst Chris Montagu noted, “New shorts have dominated the flow of funds in the US stock market.” Traders are also receiving more data regarding the weakness in the US labor market, as ADP data shows that in the four weeks ending October 25, the US private sector saw an average weekly decline of 11,250 jobs.