Hedge funds sell US stocks at fastest rate since January, per Goldman Sachs.
Goldman Sachs' prime brokerage highlighted a shift in market momentum, noting that the recent sell-off aligns with positive economic growth indicators and the Federal Reserve's firm stance on maintaining elevated interest rates for an extended period.
The report revealed net selling in both macro products, such as indexes and ETFs, and single stocks. Last week marked the first net selling of macro products in six weeks, while single stocks experienced their third consecutive week of net sales, recording the highest notional net selling of the year.
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 decline. Cyclical sectors, in particular, faced the heaviest notional net selling since December.
The industrial sector was notably affected, experiencing net selling for 11 consecutive sessions. This sector, which includes machinery, ground transportation, professional services, and passenger airlines, saw the most significant net selling over any two-week span in over a decade.
