Goldman Sachs: Hedge Funds Set Record Short Positions on US Stocks, Market Turmoil Triggered by AI Impact Concerns

Goldman Sachs issued a warning that as concerns about artificial intelligence potentially disrupting traditional business models continue to rise, hedge funds are shorting U.S. stocks with unprecedented intensity. Data shows that last week, the nominal short-selling volume of individual stocks reached a record high since 2016.

Goldman Sachs' prime brokerage team noted in a client report that during the period from January 30 to February 5, hedge fund short-selling volume significantly exceeded buying volume at a ratio of approximately 2:1. Overall, hedge funds have net sold U.S. stocks for the fourth consecutive week, with the selling pace reaching its highest level since early April of last year.

Market volatility is closely related to advancements in AI technology. Reports indicate that after Anthropic launched new tools to automate tasks across multiple industries, a concentrated sell-off occurred in the market. Last week, a total of 164 stocks in sectors such as software, financial services, and asset management saw approximately $611 billion in market value evaporate.

Despite a rebound in U.S. stocks last Friday, the Nasdaq 100 index still recorded its worst week of the year, reflecting that market sentiment remains fragile.