Early Monday morning, US stock futures fell significantly, particularly those tied to the Dow Jones Industrial Average. These fell 0.44% or 139 points, while S&P 500 futures fell 0.6% and Nasdaq 100 futures fell 0.89%.

The Dow and the S&P traded slightly lower last Friday, while the Nasdaq Composite rose for a fifth consecutive day.

Most of the major medians had a positive week after a stronger-than-expected jobs report on Friday, which shows that the economic downturn that investors feared is not yet here, giving them some hope.

Treasury yields also rose with 2-year Treasury yields above the 10-year yield, a reversal that many believe to be an indicator of recession. Greg Bassuk, Managing Director of AXS Investments, also said:

“While the markets ended in solid green for the week, investors should brace for continued volatility in July, with ongoing uncertainties looming with respect to inflation, Fed policy, recession concerns, the enduring Russian-Ukraine war, all as we also move into corporate earnings season.”

Read also: Stock Future Takes a Dip While Wall Street’s Momentum Shows Irregularities

Regardless of how beneficial this is for the economy, the jobs reports could encourage the Federal Reserve to continue its policy of aggressively raising interest rates in the coming months to combat high inflation. That remains to be seen, but speculation will be tested this week with a string of big bank earnings and consumer inflation data this week.

“With recessionary fears weighing on the markets, investors are hyper-focused on corporate earnings for greater clues about the health of corporate America and the broader US economy,” said Bassuk. “A sharper lens will be needed to dissect these earnings reports, as a strong second quarter might be accompanied by very conservative outlooks.”

“As commodity and other producer costs remain high, companies will be factoring in the extent to which those heightened prices can be passed on to consumers and, likewise, how to keep earnings vigorous amid economic, geopolitical and other key headwinds,” he added.

Investors also expect key inflation data this week, with the June CPI due out on Wednesday. Headline inflation is expected to rise above the 8.6% level from May.

“Investors expect more aggressive Fed rate hike actions,” said Bassuk. “Unless the inflation data shows an outsized reduction in prices, balanced against concerns that an over-aggressive boost in rates could tip the US into recessionary territory.”

The June Producer Price Index will be released on Thursday, while the University of Michigan Consumer Confidence report will arrive on Friday.

Read also: 5 of the best-selling stocks of September

A potential economic recovery, coupled with the federal government’s unprecedented fiscal stimulus, causes the S&P 500 to record all-time highs. But the unemployment rate in the United States, around 10%, has many investors skeptical of the market’s strong recovery.

Investors often use short selling to measure market sentiment. Short sellers place bets on individual stocks. Many times, short-sellers see a critical flaw in the underlying activities of a business. Other times they think that an otherwise high-quality stock has risen too high too quickly.

But while a sizeable short position can be a red flag for some companies, stocks with a high percentage of the short float are often vulnerable to temporary pressures. Short-term pressures are large, short-term spikes in the stock price triggered when short sellers are forced to close their positions at the same time.

S3 Partners analyst Ihor Dusaniwsky says these five best-selling stocks are getting the most attention from direct short sellers in September:

Apple (AAPL)

Apple was one of the best performers in the market in 2020 and is up over 80% since the start of the year. In August, Apple made history when it became the first megapack tech stock to reach a market cap of $ 2 trillion, and the stock showed no sign of slowing towards what could be a massive iPhone 5G upgrade cycle. Apple also recently completed a 4-to-1 stock split after a multi-year run to record highs.

Apple’s short sellers can bet that the 5G iPhone launch will be a top for the stock, or they can use Apple as a hedge against long positions in other stocks. Whatever the reason, Dusaniwsky claims Apple has $ 14.3 billion in short-term interest, more than any other stock in the world except Tesla (TSLA). With Apple stocks soaring, short-sellers are stepping into their shoes.

GSX Techedu (GSX)

GSX Techedu is a Chinese online training and mentoring company. The stock skyrocketed over 330% in 2020, but some high profile short-sellers are taking this up. In the last quarter, GSX saw 382% revenue growth and 336% net profit growth, but overdraft companies Citron Research, Muddy Waters Research, and Grizzly Research all accused financial fraud.

In early August, Citron compared GSX to the fraudulent German payment processor Wirecard. Dusaniwsky says short sales in GSX started to ramp up in late March. But many of those short-sellers have suffered heavy losses due to gains since the beginning of the year.

GSX short sellers may be encouraged by other recent Chinese frauds, most notably education company TAL Education Group (TAL). GSX Techedu has $ 2.61 billion in short-term interest, up to $ 336.6 million in the past three weeks alone.

Sea (SE)

Sea is a mobile and PC gaming platform, e-commerce developer, and marketplace operator headquartered in Singapore. Sea shares have risen about 298% year to date and 1,040% since August 2018 as the global health crisis has given a significant boost to the gaming industry.

Sea went public in 2017, and it is a Free Fire mobile game amassed up to 80 million daily active users. At the end of August, Sea reported nearly 188% annual revenue growth from e-commerce and almost 62% yearly revenue growth from digital entertainment.

While investors in the Sea see a company generating massive growth in a fast-growing technology field, short-sellers may see a stock that can overheat and a company that is not yet to report a profit. The earnings report didn’t deter short sellers. They added $ 185.8 million to their position over the past three weeks, bringing Sea’s total short interest to $ 4.14 billion.

Teladoc Health (TDOC)

Teladoc Health offers virtual access to healthcare providers. In early August, the company announced an $ 18.5 billion merger with Livongo Health (LVGO), a software company developing products to monitor and manage chronic disease.

Some investors have hailed the merger deal as a timely investment to expand Teladoc’s digital and remote healthcare services. But short-sellers may be interested in its debt and its high valuation relative to its historical reach. Teladoc will also take over Livongo’s $ 550 million deficit.

In the second quarter, which ended June 30, Teladoc recorded a 92% increase in paid members. Its stocks increased by around 150% in 2020.

Teladoc’s short sellers added $ 159.3 million to their positions over the past three weeks, bringing the stock’s total short interest to $ 1.69 billion.

Workhorse Group (WKHS)

Tesla received a lot of attention in 2020 because of its share price rise, but it’s not the only fleet of electric vehicles raising some eyebrows. Workhorse’s stock rose more than 480% in 2020, even surpassing Tesla.

Workhorse aims to replace gasoline and diesel delivery vehicles with its electric vehicle vans. Investors see an essential long-term opportunity for the company, but the massive rally in stock has set its bar high. Workhorse now has a market cap of around $ 1.9 billion despite only reporting $ 92,000 in second-quarter revenue.

A growing number of short sellers are starting to see the madness of seemingly random buying EV stock in 2020 as a potential bubble, and Workhorse’s early status could place it among the most vulnerable stocks if the bubble burst. Workhorse has a total of $ 435 million in short-term interest, up from $ 137.9 million in the past three weeks alone. Its selling interest also represents 30.7% of its free float, by far the highest percentage of all five stocks listed.

While some shares of restaurants like Domino’s Pizza (ticker: DPZ) have done well during the pandemic, many others have not done so well. This can be an opportunity for investors. Here’s a look at seven budget restaurant stocks that have been defeated but seem to be able to weather the rest of the pandemic and end up rewarding investors willing to take the risk. In this list, you will find that multi-brand restaurant companies have performed better than those with only one name. That said, those stocks are all in negative territory for the year, and an economic recovery that includes a vaccine could potentially substantially boost all of these names.

Dave & Buster Entertainment (PLAY)

Right now, Dave & Buster “looks like a pretty cheap stock,” says Andy Barish, an analyst at Jefferies. He expects some recovery next year, but not to 2019 levels. After shutting down all of its sites temporarily due to the pandemic, the company had reopened 89 locations on September 9 – but all were operating under reduced hours and capacity limits as dictated by each site, new seating, and gaming configurations for promoting social networks. Distancing, a temporarily condensed food and drink menu, and extended cleaning and hygiene procedures. Dave & Buster’s is one of those companies that should be reborn once a vaccine is developed, and the economy is more substantial in 2021, said TG Watkins, director of equities at Simpler Trading. The stock fell more than 54% from the start of the year until mid-September.

Ruth’s Hospitality Group (RUTH)

Upscale steakhouses like Ruth’s Chris often don’t top people’s lists for to-go orders, and during tough economic times, many people may choose not to indulge inexpensive meals. In the month to date through July 28, comparable store sales at own restaurants declined 47% year-on-year. Shares of the company have fallen almost 43% since the start of the year through September 16. As the market leader in the premium food category, Ruth is a better-capitalized chain than many private companies. As some of them are closing, Ruth’s is expected to increase its market share over time, says Barish. “As we work through 2021, the number of competitive concepts out there,” he adds.

Denny’s Corp. (DENN)

Watkins uses Denny’s as an example of an investment case in which stock would not have to skyrocket beyond pre-pandemic levels to have the potential to make money for investors. The stock was trading at around $ 21 before the pandemic. At the closing price on September 16 of approximately $ 11, even just getting back to those levels would represent a gain of almost 100%. The recovery of the business is heavily dependent on the regulation of local restaurant dining rooms, which in turn is linked to the number of virus cases. In his latest report, for the quarter ended June 24, Denny’s said national sales at the system level and in the same store dropped dramatically from the same period last year. Although sales in the same store were negative, the pace of the decline slowed for most weeks of the quarter. But preliminary results showed that during fiscal July, the weekly decline picked up as several states resumed their dining room closures.

Restaurants in Darden (DRI)

Charles Lieberman, chief investment officer of Advisors Capital Management, believes the owner of the Olive Garden and LongHorn Steakhouse brands will survive the pandemic and end with less competition. While there is a risk of a spike again this fall, think that in six months, there will be at least one vaccine out. “Once we have a vaccine, all of these restaurants will have a higher price,” he says. Even though casual dining has been hit hard, Darden has done an excellent job with his business’s takeaway side, says R.J., analyst at Morningstar. Hottovy. And the company’s restaurants are affordable even with the economic downturn, he adds. Shares of Darden were down nearly 14% year-to-date through September 16.

Bloomin’ Brands (BLMN)

Like Darden, Bloomin ‘has several brands. Owning the Bonefish Grill, Outback Steakhouse, and Carrabba’s Italian Grill brands means this restaurant has more in stock than one-brand restaurant businesses in case a brand struggles, Watkins says. However, the company’s shares fell more than 25% from the start of the year through September 16. During the second quarter, the company’s sales fell by more than 43%. But BLMN has managed to keep all of its locations substantially open thanks to rapid growth in off-premises sales. “The investments made over the past several years to enhance the customer experience and rapidly pursue the emerging delivery opportunity have been critical to our success in tackling this pandemic,” CEO David Deno in a press release in July. “With the outbreak of this pandemic in March, we were able to quickly switch to a business model that was only outside the buildings, as dining rooms were forced to close.”

Restaurant Brands International (QSR)

Shares of Restaurant Brands International, owner of the Burger King, Tim Hortons, and Popeyes Louisiana Kitchen brands, are down more than 11% since the start of the year through September 16. The company sought to transform the struggling Tim Hortons brand even before the pandemic. But the Popeyes brand is a breakthrough in the restaurant business and has potential for international growth, says Hottovy. He says the company has recruited more aggressive franchisees for Burger King, who will open more restaurants or refurbish existing ones. In the second quarter, while comparable-store sales at Tim Hortons and Burger King declined 29.3% and 13.4%, respectively, comparable store sales for Popeye’s were up nearly 25%.

Yum Brands (YUM)

Yum Brands, which owns domestic brands Kentucky Fried Chicken, Pizza Hut, and Taco Bell household brands – is the best-performing title in this group. But it’s still down nearly 6% from the start of the year through September 16, potentially offering an excellent deal to patient investors. NPC International, Pizza Hut’s largest franchisee, went bankrupt earlier this summer. But this business was in trouble even before the pandemic, says Hottovy, and he thinks Yum!, on the other hand, can come out stronger on the other side by putting Pizza Huts in the hands of more vital franchisees or removing less performing locations. Meanwhile, Taco Bell is growing and has potential for global growth, while KFC has done well by positioning itself as a value-for-money family restaurant, he says.

Shares of Upstart Holdings Inc. dropped more than 40 percent in after-hours trading Monday after the firm slashed its prediction for the whole year, saying that the current macroeconomic backdrop is projected to weigh on loan volume.

The company, which makes loan decisions with the help of artificial intelligence, now anticipates revenue of over $1.25 billion in 2022. The company had previously predicted revenue of $1.4 billion.

“On the margin, a whole lot of folks that would have been approved are no longer approved,” Chief Executive Dave Girouard said on Upstart’s UPST, -8.06 percent earnings call, due to the spike in consumer interest rates.

Many people have been denied loans, while others have been approved, but the interest rate is a few percentage points higher. “So there’s a whole bunch of loans that just never happened, and there are people who are still approved, but the interest rate is a few percentage points higher, and a certain fraction of them are going to decide that that’s not the product that they want,” said the economist.

The absence of government stimulus activities has caused delinquencies to rise, according to Chief Financial Officer Sanjay Datta, despite the fact that they had been “unnaturally low” for the previous 18 months.

Upstart has witnessed a stability in delinquency patterns over the last 60 days, but the characteristics of delinquency also contribute to higher interest rates quoted to consumers, he said.

As a result of the uncertainty in the macroeconomic environment and the potential for a recession later this year, we have decided to be more cautious in our forecasts,” Datta said on Upstart’s earnings call.

Upstart expects revenue of $295 million to $305 million in the second quarter, but experts had predicted $335 million.

Analysts had predicted $300 million in revenue for the most recent quarter, but Upstart’s revenue rose to $310 million from $121 million.

While FactSet predicted $287 million in fee income, the company collected $314 million in fee revenue, an increase of 170 percent.

At 34 cents per share, first-quarter net income for Upstart was $32.7 million, up from $10.1 million (or 11 cents per share) a year earlier. Stock-based compensation and other costs were factored into the results, and Upstart ended the quarter with earnings per share of 61 cents, compared to 22 cents a year earlier and ahead of the FactSet average estimate of 53 cents.

On the earnings call, Girouard commented, “We are actually extremely pleased and quite thrilled with the results.” Even though 2022 is “a tough year in the economy,” he stated that he is “exceptionally confident in the strength of the business and bullish about our future, as we have been.”

It has lost 31 percent of its value in the last three months as the S&P 500 has dropped 13 percent.