LONDON (Reuters) — Hedge funds last week “aggressively” bought US stocks at the fastest pace in two years, Goldman Sachs said, with traders jumping into a stock rally fuelled by hopes that the Federal Reserve’s interest-rate pause might stick.
In the week up to Nov. 3, global funds bought up US equities in the largest five-day buying spree since December 2021, Goldman’s prime brokerage trading desk said in a note dated Friday.
This left some caught in a squeeze, the bank said, when short positions became too expensive to hold as stock prices rose. Many got tangled up trying to flee crowded trades that became losing positions, it added.
All three major U.S. stock market indexes soared into Friday after a multi-session rally — five consecutive days for the S&P 500 and six for the Nasdaq — to post their biggest one-week percentage gains of 2023 so far.
Hedge funds’ long positions in information technology stocks reached the largest in eight months, said Goldman Sachs. A long…
2023-11-06 07:23:19
Original from finance.yahoo.com
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