Hedge funds sold off US stocks at a rate not seen since early January, marking a major shift in investment behavior after five straight weeks of net buying.
This change in momentum was highlighted in a report from prime brokerage Goldman Sachs, which noted that the sell-off is in line with recent positive economic growth signs and a firm stance from the Fed, suggesting that interest rates may remain high for a while. Extended. .
According to the report, both aggregate products, including indices, ETFs and individual stocks saw a net sell-off.
Last week was the first time in six weeks that aggregate products were net sold, while individual stocks saw their third straight week of net sales, recording the highest theoretical net sale observed so far this year.
Selling activity was broad across all 11 US sectors for the week ending May 24, with Industrials, IT, Financials, Energy, Materials and Real Estate sectors leading the downward trend. Cyclical sectors, in particular, faced the largest theoretical net selling since December.
The industrial sector was noticeably affected, as it witnessed net sales for 11 consecutive sessions. The sector, which includes machinery, ground transportation, professional services and passenger airlines, saw the largest amount of net sales during a two-week period in more than a decade.
