Hedge funds increase long positions in US tech stocks in expectation of a 50 bps Fed rate cut.

Hedge funds have rapidly increased investments in U.S. tech and media stocks, driven by expectations of a 50-basis point rate cut from the Federal Reserve. This cut is anticipated to lower borrowing costs and boost consumer spending, potentially uplifting stock prices. Hedge funds are now holding nearly three times more long positions in tech stocks than short ones. Meanwhile, consumer discretionary stocks saw more selling than buying for the first time in four weeks.

September 23, 2024
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