Hedge funds are quickly dumping stocks as President Donald Trump’s aggressive tariff agenda surged volatility on Wall Street. According to data from Goldman Sachs’ Prime Brokerage Unit, these professional traders have been selling global stocks for six consecutive weeks for six consecutive weeks, with conceptual de-logging amounts reaching the highest level since July last week. The cohort is particularly escaping the technology name in flight, offloading stocks at the fastest pace in six months. Last week’s sales were also the second largest concept in the last five years, Goldman data suggested. .SPX YTD Mountain S&P 500 Bank of America Trading Desk has flagged bearish sentiment among hedge funds and other money managers. “Emotions in all conversations are pretty bearish. From a risk/exposure perspective, long/short books seem to be very tight. Long only seems to be placed very defensively.” “The mood is very cautious.” The hedge fund was retreating when the macroeconomic environment suddenly became uncertain. President Donald Trump’s aggressive tariffs on imports into the United States have led to a decline in consumer spending, slowing economic growth and creating fear of a recession. Investors are blessed with Trump’s Wednesday mutual tariff levies on “all countries.” The White House has already slapped punitive tariffs on aluminum, iron and automobiles, along with increasing tariffs on all goods from China. Earlier this month, the S&P 500 was immersed in the corrections territory, falling 10% from its recent peak. The benchmark is currently 9.5% below that record 9.5% since February. Get tickets for Pro Live Join us on the New York Stock Exchange! An uncertain market? Earn Edge with CNBC Pro Live, the first exclusive event on the historic New York Stock Exchange. Access to expert insights is paramount in today’s dynamic financial situation. As a CNBC Pro subscriber, we recommend attending the first exclusive and in-person CNBC Pro live event held at the iconic NYSE on Thursday, June 12th. You will also get the opportunity to network with CNBC experts, talent and other pro subscribers during exciting cocktail hours on the legendary trading floor. Tickets are limited!
