- Goldman Sachs’ prime brokerage unit said hedge funds bought US stocks at the fastest pace in six months.
- It said expectations for AI infrastructure investment, strong corporate earnings, a ninth straight weekly gain in the S&P 500 Index, and a rise of more than 20%% in the Nasdaq 100 Index have supported strength in US equities.
- Markets are watching whether the rally in US stocks will help revive sentiment across risk assets, but Bitcoin and other cryptocurrencies have remained relatively subdued because of Middle East risks and pressure from interest rates.
Forecast Trend Report by Period
Hedge funds bought US stocks at the fastest pace in six months last week, as expectations for AI infrastructure spending and strong corporate earnings helped keep equities on a different path from crypto markets.
Odaily, a crypto-focused media outlet, reported on June 1 that Goldman Sachs’ prime brokerage unit said hedge funds stepped up purchases of US stocks at the fastest rate in six months. Over the same period, the S&P 500 extended its record-setting advance.
Goldman traders wrote in a client note that the change in trading volumes reflected both long buying in index products and exchange-traded funds, along with short covering. Short positions in US-listed ETFs declined for a second straight week, falling 0.6%.
Expectations for AI infrastructure investment were cited as a key driver of the US stock rally. Odaily, citing Jinse, reported that continued enthusiasm around building AI infrastructure and better-than-expected corporate earnings underpinned gains in US equities.
The S&P 500 rose for a ninth straight week, its longest such streak since 2023. The tech-heavy Nasdaq 100 has gained more than 20% this year.
Markets are watching whether the strength in US stocks will revive sentiment across risk assets more broadly. Bitcoin and other cryptocurrencies, however, have remained relatively constrained as Middle East risks, interest-rate pressure and concerns over derivatives position unwinding weigh on the sector.