
As it turns out, President Trump's rollout of trade tariffs has caused a lot of negative talk about the broader S&P 500 index and its constituents. However, some names could be set to rebound quicker than the bears may think after uncertainties subside.
Once the fog of tariff uncertainty lifts, high short-interest stocks could become prime candidates for a classic “short squeeze.” This phenomenon, also known as bearish capitulation, occurs when bearish investors—those betting against a stock—are forced to buy back shares rapidly as prices rise, further accelerating the rally.