Trend-following hedge funds post worst week since 2024 as AI stocks slump
Goldman Sachs says trend funds suffered their weakest week in two years as tech stocks sold off over doubts about returns on AI spending.
- published on Newsmetry
- original source published
the public page opens no earlier than 15 minutes after we detect the story. approved stories may reach the api sooner. connect the api →
what happened
Trend-following hedge funds recorded their worst weekly performance in two years, according to a Goldman Sachs note seen by Reuters. Concerns about the payoff from heavy AI spending drove volatility across stocks and bonds.
The Nasdaq 100, home to the largest technology companies, fell 5.5% over the week, its sharpest weekly drop since April 2025, when Donald Trump's Liberation Day tariffs shook global markets. Meta shares slid 10% after it reported strong earnings but said it would need to raise more capital for its AI investments. Investors moved into US Treasuries while selling debt of more fragile economies such as France.
why it matters
Systematic long-short funds, which follow market trends, lost 2% in their worst week since 2024, while fundamental long/short strategies fell 1.1%. Goldman also said its prime brokerage desk logged about $20 billion of tech stock selling over the last two weeks, close to July's $23 billion unwind.
market impact
Tech stocks and Nasdaq 100: hedge fund selling adds pressure; US Treasuries gain as a safe haven
tags
instruments
sources
- Trend hedge funds saw worst week since 2024 as AI stocks fell, Goldman says — Reuters, 26 October 2026 at 11:15 UTC
prepared by the newsmetry newsroom with ai assistance from the sources listed below. not investment advice.
the public page opens no earlier than 15 minutes after we detect the story. approved stories may reach the api sooner.
get stories in real time ↗