The Week Ahead: A Monetary Policy Overview Amid Wall Street’s Short-Squeeze Saga
June 18, 2023
Next week, all eyes will be on Jerome Powell, the Chairman of the Federal Reserve. He is slated to appear before the House Financial Services Committee and the Senate Banking Committee. These proceedings offer a key platform for the Fed Chairman to share his insights and forecasts.
Powell’s Anticipated Testimony
Powell’s testimony is expected to be a significant contributor to the week’s financial narrative, dovetailing with the release of the Fed’s semi-annual monetary policy report. This report is a crucial resource for stakeholders looking to understand the present and future state of the U.S. economy.
The Tumultuous World of Shorted Stocks
Meanwhile, Wall Street is keenly watching the continuation of rally momentum for heavily shorted stocks. Over the past week, several stocks with short interest exceeding 20% of total float have staged impressive rallies. The list includes prominent names such as Nikola (NKLA), EHang (EH), Carvana (CVNA), Workhorse Group (WKHS), Hyzon Motors (HYZN), Cipher Mining (NASDAQ:CIFR), C3.ai (AI), Virgin Galactic (NYSE:SPCE), Zentalis Pharmaceuticals (NASDAQ:ZNTL), and Upstart (UPST).
In the coming week, these stocks will be closely watched to determine whether their bullish runs can persist or if the short-squeeze phenomenon will gradually dissipate.