GS · News · 20261019N

AI Defensive Trade Outlook

GOLDMAN SACHS GROUP INC · 2026-10-19 · Importance 22 · Surprise 32

Goldman Sachs's prime brokerage data showed hedge funds reducing technology-stock positions at the fastest pace in at least a decade during the five trading sessions through October 15. The selling followed a 5.5% weekly decline in the Nasdaq 100, its worst performance since April 2025, as the global AI trade unwound. Gross hedge-fund trading activity also fell at the fastest rate in nearly three months, according to Goldman Sachs's global banking and markets group.

Key facts

• Goldman's prime desk reported hedge funds reduced their technology stock positions at the fastest rate in at least a decade during the five trading sessions through Oct. 15. source
• Goldman Sachs' note said the Nasdaq 100 dropped 5.5% for its worst performance since April 2025 during the period covered by Goldman's data as the AI trade unwound globally. source
• Goldman Sachs' global banking and markets group said gross trading activity among hedge funds fell at the fastest pace in nearly three months. source