The sell-off in US technology stocks has reportedly reached its highest intensity in eight years. According to a recent report from Goldman Sachs Prime Services, hedge fund managers dumped information technology (XLK) assets en masse during the week ending June 25, 2026.
This sales volume stands as the largest on record since Goldman Sachs began tracking sector flows in 2016. In fact, the scale of this sell-off surpassed the market turmoil that hit the Nasdaq 100 index in August 2024, when the market suffered a sharp correction of over 10 percent.
This phenomenon reflects a broader trend of reducing overall US stock market exposure. The same report indicates that this selling wave is the most significant since the market uncertainty period of April 2025, which was triggered by global sentiment following Liberation Day events.
In addition, the shift in hedge fund portfolios is clearly visible in mega-cap stocks belonging to the 'Magnificent Seven' group. Currently, their investment allocation in this group has shrunk to 14.5 percent of total portfolio, the lowest level recorded in three years.
This 7 percentage point drop since the start of 2026 marks the most drastic six-month contraction since the market entered a bearish phase in 2022. This move indicates a shift in risk management strategies amid lingering global economic uncertainty overshadowing US capital markets.
