Hedge Funds Buy U.S. Tech Stocks After Fed Rate Cuts: Goldman Sachs

Hedge funds are snapping up U.S. tech stocks as the Federal Reserve’s anticipated 50 basis point rate cut drives interest rates lower. According to a Goldman Sachs report, hedge funds purchased tech and media stocks at the highest rate in four months.

Lower interest rates are expected to boost industrial spending and make digital products more affordable, potentially increasing the stock prices of technology companies. As a result, the S&P 500 closed 1.15% higher last week following the Fed’s first rate cut in four years.

The report also highlighted that hedge funds made nearly three times more long bets on information technology stocks than short positions, indicating strong confidence in the sector’s growth.