Homebuilder Stocks Stage a Wild Rally Amid Fed Cut Hopes.

Homebuilder stocks are experiencing a significant rally, with shares jumping 22% in the past 10 days, the highest rate of expansion since May 2020. This rally is attributed to a softer-than-expected inflation print, which has increased bets that the central bank will begin easing sooner than anticipated. Additionally, positive results from D.R. Horton Inc. have sparked optimism about growth prospects for the industry. The rally has resulted in losses for short sellers in the industry, with $750 million in paper losses this month. The S&P Composite 1500 Homebuilding Index is up 18% in July, compared to a 2% gain in the S&P 500 Index. [Extracted from the article]