Key facts
- Trend hedge funds saw a 2% decline last week, the worst since 2024.
- The Nasdaq 100 fell 5.5% last week.
- Meta shares dropped 10% last week.
- Goldman Sachs reported $20 billion in tech stock selling over the past two weeks.
Trend-following hedge funds experienced their worst weekly performance in two years last week, with a 2% decline, as concerns about the eventual payoff from hefty AI spending ignited volatility across stocks and bonds, according to a Goldman Sachs note. The Nasdaq 100, which includes major tech stocks, fell 5.5% last week, its largest weekly drop since April 2025. Meta's shares slid 10% last week after the company indicated it would need to raise more capital for its AI investments, contributing to market jitters. Bond markets also saw volatility, with investors seeking the safety of US Treasuries and selling debt from more fragile economies like France.