Hedge Funds Unleash Decade's Largest Tech Deleveraging, Weighing on US Tech 100

Goldman Sachs reports hedge funds sharply cut U.S. tech exposure in the largest deleveraging wave in a decade on a trailing two-week basis, amplifying downside risks for the US Tech 100. This escalates from a second consecutive week of reductions noted on May 4, marking accelerated de-risking amid high valuations and cyclical concerns. The shift signals rising risk aversion, potentially boosting volatility in tech benchmarks and XLK ETF, which last traded at 162.05 after pre-market 163.25 with $105.11B AUM.