Goldman Sachs prime brokerage data reveals that hedge funds increased their global equity exposure at the fastest net pace in four months during the week ending June 4, 2026. The buying was broad-based across nine of eleven sectors, driven primarily by single stocks and macro products.
The next day, June 5, the Nasdaq Composite plunged 4.18%, losing over 1,100 points in its largest single-day drop ever. The catalyst? A stronger-than-expected jobs report, which dimmed hopes for Fed rate cuts and hit highly-valued growth stocks.
Goldman analyst John Flood characterized the selloff as profit-taking and sees a potential buying opportunity, maintaining his S&P 500 target of 8,000.
For investors, the key question is whether this marks a temporary correction or the start of a broader rotation out of tech and AI stocks, which were already seeing profit-taking before the crash.