Hedge Funds Buy US Stocks at Fastest Pace in Six Months Amid AI Optimism, Goldman Says

Hedge funds purchased U.S. equities last week at the fastest pace in six months, extending the S&P 500’s longest winning streak since 2023, according to a Goldman Sachs prime brokerage report released June 2, 2026. The buying was driven by new long positions and short covering in index and ETF products, while short interest in U.S.-listed ETFs fell for a second straight week. The S&P 500 has risen for nine consecutive weeks, and the tech-heavy Nasdaq 100 is up more than 20% year-to-date, fueled by persistent enthusiasm over AI infrastructure spending and a better-than-expected earnings season. Financial stocks attracted the largest net buying in six months, led by payments and banks, though the sector’s allocation remains near a five-year low. In contrast, industrial stocks saw net selling in seven of the past eight weeks, with short exposure at a one-year high. Risk appetite surged as net leverage rose to 55.3%, in the 89th percentile over the past year, while the fundamental long/short ratio hit the 99th percentile.