Hedge funds executed the largest weekly net selling of US technology stocks on record, according to data from Goldman Sachs Prime Services. The week ending June 25 saw a z-score of -4.0, the most extreme reading since tracking began in 2016.
Semiconductor and hardware stocks accounted for over half of the outflows. This is a dramatic reversal from May, when hedge funds held near-record positions in the same sectors, driven by artificial intelligence optimism.
The group of mega-cap tech giants known as the Magnificent 7 saw their positions shrink for a fifth straight week. Their aggregate exposure dropped to a three-year low.
Total US equity outflows for the week reached $8.5 billion. Large-cap tech stocks fell approximately 6% during the period, underperforming the broader S&P 500's 2% decline.
The selling pressure extended into early July, indicating a potential strategic repositioning by institutional investors rather than a simple rebalancing.