Bets against the stock market are at all-time highs, as investors doubt the S&P 500’s months-long rally can survive sharpened AI fears and the Iran war’s threat of renewed inflation. The total amount currently bet against shares of the S&P 500 companies recently hit $1.4 trillion, about 3.7% of the float, the highest since at least 2010, according to data provider S3 Partners. Bets against AI companies, in particular, are creeping up — nearly one-third of SpaceX’s shares and a quarter of CoreWeave’s are sold short — but the bearishness is bleeding into companies exposed to consumer spending, like Dave & Buster’s (43%), Norwegian Cruise Line (18%), Molson Coors (18%), Live Nation (15%), and Wynn Resorts (12%). But there are signs this market indigestion is getting worse: Nobody has caught the falling knife of IBM’s earnings whiff. And a wave of share sales from anticipated AI listings and tech companies struggling to keep up with their AI bills will further test the market’s appetite.