Why a $33 billion stock market buying spree is now winding down

Goldman Sachs warns that a recent $33 billion wave of mechanical buying in S&P 500 futures by CTAs has likely peaked, creating a potential headwind for the US SP 500 after the index notched its seventh record of the year. CTAs have accumulated roughly $10 billion in bullish S&P bets and picked up $33 billion in futures last week, with another $23 billion slated for this week — a slower pace that suggests the highest-velocity demand is behind the market. Goldman also flagged elevated hedge-fund gross leverage (about 310%), raising vulnerability even as net leverage remains more moderate. Traders expect flows to shift from systematic futures to single-name buying, with client interest concentrated in AI-related tech (notably Applied Materials and Marvell), energy and industrials. Overall, the piece signals cautious market conditions: the rally could extend, but diminishing mechanical demand and high leverage increase the risk of a pullback in the S&P 500.