
Hedge funds sold US equities at a rate not seen since early January, marking a significant shift in investment behavior after five consecutive weeks of net buying.
This change in momentum was highlighted in a report by Goldman Sachs' prime brokerage, which noted that the sell-off aligns with recent positive economic growth signs and a firm stance from the Federal Reserve, indicating that interest rates may stay elevated for an extended period.
According to the report, both macro products, including indexes and ETFs, and single stocks experienced net selling.
The last week marked the first time in six weeks that macro products were net sold, while single stocks saw their third consecutive week of net sales, posting the highest notional net selling observed so far this year.
The selling activity was widespread across all 11 US sectors for the week ending May 24, with industrials, information technology, financials, energy, materials, and real estate leading the downturn. The cyclical sectors, in particular, faced the heftiest notional net selling since December.
The industrial sector was notably impacted, experiencing net selling for 11 consecutive sessions. This sector, which includes machinery, ground transportation, professional services, and passenger airlines, saw the most significant amount of net selling over any two-week span in over a decade.
Begin trading today! Create an account by completing our form
At One Financial Markets we are committed to safeguarding your privacy.
Please see our Privacy Policy for details about what information is collected from you and why it is collected. We do not sell your information or use it other than as described in the Policy.
Please note that it is in our legitimate business interest to send you certain marketing emails from time to time. However, if you would prefer not to receive these you can opt-out by ticking the box below.
Alternatively, you can use the unsubscribe link at the bottom of the Demo account confirmation email or any subsequent emails we send.
By completing the form and downloading the platform you agree with the use of your personal information as detailed in the Policy.