STOCKS | Hedge Funds Accelerate U.S. Stock Purchases Amid S&P 500 Rally

Hedge funds have been purchasing U.S. stocks at the fastest pace in six months, according to Goldman Sachs' prime brokerage division. This activity coincides with the ongoing record-breaking rally of the S&P 500 index. According to Jin10, Goldman Sachs traders noted in a client report that the shift in trading volume was driven by long purchases of index products and exchange-traded funds (ETFs), as well as short covering. Short positions in U.S.-listed ETFs decreased for the second consecutive week, falling by 0.6%. The continued enthusiasm for investments in artificial intelligence infrastructure, along with better-than-expected performance, has contributed to the sustained rise in U.S. stock markets. The S&P 500 index has risen for nine consecutive weeks, marking the longest streak since 2023. Meanwhile, the tech-heavy Nasdaq 100 index has gained over 20% this year.