Hedge Funds Sell US Stocks at Fastest Pace Since Tariff War After Buying Dip in Late July, Then Reversing to Selling Last Week

After weeks of aggressive buying, funds abruptly reversed course last week, with net selling hitting the largest scale since "Tariff Day." Goldman Sachs data shows net leverage plunged 3.0 percentage points to 48.3%, a one-year low. Information technology saw the heaviest selling, while utilities posted a rare five-year net selling record. Morgan Stanley confirmed this was the second-largest week of global equity selling in the past 12 months. Nvidia's earnings and the Jackson Hole symposium are set to be the next key tests for the market.