Goldman Sachs announced in a report on Wednesday that global hedge funds have reduced their exposure to US stocks for five consecutive days, as technology stocks have generally fallen in recent days.
According to the bank's data, the value of stocks sold by hedge funds in the past five trading days is the highest since November 2022, approaching a five-year record high, but specific data has not been provided. In addition, the report also stated that hedge funds sold US technology stocks on seven out of the past eight trading days.
The bank's report stated that the information technology industry was the first to bear the brunt of this sell-off, followed by the industrial, healthcare, non essential consumer goods, and communication services industries.
As one of the world's largest hedge fund stock trading and financing providers, Goldman Sachs analyzes trends by tracking clients' investment portfolios.
On Wednesday, the sell-off of technology stocks dragged down the Nasdaq Composite Index by 2.77% to 17996.92 points, marking the largest daily decline since December 2022; The S&P 500 index fell 1.39% to 5588.27 points.
Most tech giants have suffered a painful decline. Apple fell 2.53%, Microsoft fell 1.33%, Amazon fell 2.64%, META fell 5.68%, Google-A fell 1.58%, Tesla fell 3.14%, Nvidia fell 6.64%, Intel rose 0.35%, Qualcomm fell 8.61%, AMD fell 10.21%.
The recent sell-off of technology stocks has caught the attention of Wall Street tycoons. Morgan Stanley stated in a report released earlier this week that global hedge fund exposure to US software stocks hit a multi-year low last week amid widespread selling in technology stocks.
Among them, software stocks are the stocks with the highest net sales, which continues the net selling trend in the field since the end of April and lowers the risk exposure to a new low in many years, "wrote the report by Morgan Stanley.
Goldman Sachs is not the first to report this trend. Earlier this week, the bank reported that hedge funds sold information technology and communication services stocks for the fourth consecutive week. In the past eight weeks, hedge funds have experienced net selling for seven weeks.