Wall Street hasn’t been this bearish on the stock market in more than a decade.

Hedge funds and other speculative investors have built up a big bet that the S&P 500 will decline, marking their most bearish positioning since 2007. At the same time, they are preparing for a rally in the technology-focused Nasdaq-100, with net bullish wagers in recent weeks approaching the highest levels since late last year.

Big tech stocks have some of the highest short interest in the market. Last month, investors added $3.57 billion to their short positions against Tesla, $2.5 billion against Nvidia and $7.26 billion against Facebook parent Meta Platforms, S3 Partners data show. All three stocks rallied in May, leaving short sellers with more than $7 billion in losses.