Short Bets on S&P 500 Healthcare Sector Decline in July; Moderna Remains Most Heavily Shorted Stock

Friday, Aug 15, 2025 8:39 pm ET1min read

Short bets on the S&P 500 Healthcare sector eased in July, with the average short interest decreasing to 1.95% from 1.96% in June. Moderna remained the most heavily shorted stock in the sector, despite the overall decline in short interest.

The average short interest in the S&P 500 Health Care Index Sector (NYSEARCA:XLV) dipped slightly in July to 1.95% from 1.96% in June. This decrease indicates a modest shift in investor sentiment towards the sector. However, Moderna (NASDAQ:MRNA) retained its position as the most heavily shorted stock in the sector, despite the overall decline in short interest [1].

The recent developments in the healthcare sector, particularly around mRNA technology, have been a significant focus. Health Secretary Robert F. Kennedy Jr. has been vocal in his criticism of mRNA vaccines and has canceled $500 million worth of Biomedical Advanced Research and Development Authority (BARDA) contracts related to mRNA vaccine research. This move has sparked controversy, as mRNA vaccines have been credited with saving millions of lives and have a history of federal funding and support [2].

The cancellation of these contracts, along with other actions by Secretary Kennedy, has raised concerns about the future of mRNA technology and its potential applications beyond infectious diseases, such as in oncology. Prominent scientific leaders have spoken out against these moves, highlighting the importance of mRNA technology and the safety of mRNA vaccines [2].

Despite these challenges, the healthcare sector continues to evolve and adapt. The recent decrease in short interest in the sector suggests that investors are cautiously optimistic about the future prospects of the industry. However, the ongoing debates surrounding mRNA technology and vaccine policies may continue to impact investor sentiment and market performance.

References:
[1] https://seekingalpha.com/news/4485246-short-bets-on-sp-500-healthcare-sector-ease-in-july-moderna-remains-most-heavily-shorted-stock
[2] https://www.biospace.com/policy/rfk-jr-creates-more-vaccine-misinformation-with-mrna-cancellations

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