Global Information Technology Sector Faces Heaviest Sell-Off Since 2016
The global information technology sector has experienced its most intense sell-off since 2016, with cumulative data from the past three trading sessions showing record long-position liquidation. The Nasdaq 100 Index fell for six consecutive trading days, marking its longest losing streak since November 2016. Goldman Sachs noted that while hedge funds halted selling ahead of the Federal Reserve meeting, trading desks still observed capitulation-driven capital flows
Cumulative percentage data from the past three trading sessions shows that long-position selling in the sector hit a record high not seen since 2016.
On a positive note, Goldman Sachs pointed out that fundamental long-short hedge funds, which had been de-risking on our trading desk since last week, completely ceased their activities today ahead of the Federal Reserve meeting.
They are not buying, but at least they have stopped selling.
After the close, Arianna Contessa of Goldman Sachs noted that the trading desk continued to see capitulation-driven capital flows and price movements, with the Nasdaq 100 Index falling for six consecutive trading days (the longest losing streak since November 2016).
