Hedge funds ditch tech and buy essentials, Goldman Sachs says
The S&P 500, which includes seven tech stocks in its top 10 largest constituents by market value, has surged roughly 28% since its 2025 low, while the Nasdaq Composite has jumped 38% in that time.
As of Friday, the S&P 500's forward price to earnings ratio, which reflects the value of a company's stock relative to its projected future earnings, was 23.11, around five-month highs, according to LSEG/Datastream.
"U.S. equities valuations (such as price earnings ratios) are now 30% higher than their recent decade average, while 10-year yields remain stubbornly high and volatile. The future path of equities may depend partly on a decline in long-term rates; however, we do not seem to be there yet," Lombard Odier Investment Managers head of macro Florian Ielpo said in a note on Friday.
Globally, hedge funds sold tech stocks, some of the most richly valued equities, more than any other sector last week, the Goldman Sachs note said.
Rather than shorting the sector, hedge funds tended to ditch long bets and exit trades, the bank said. A short bet is designed to profit from a drop in an asset price.
This week's exodus was the largest the bank had seen since July 2024, Goldman Sachs said.
Hedge funds fleeing tech stocks centered on trading in North America and Europe.
Every kind of tech stock was sold, including semiconductor chip companies, as well as those in software and IT services, the bank said.
Meanwhile, shares in consumer staples - companies that sell items that people purchase regardless of economic conditions - were among the most net bought U.S. stock sectors this week, Goldman said.
Hedge funds piled into these stocks for the fourth straight week and their trades were almost entirely long positions - those that will profit if the stock prices rise.
The kind of companies whose shares hedge funds bought included those that sell food and beverages and personal care products. (Reporting by Nell Mackenzie; Editing by Amanda Cooper and Alison Williams)
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Hindustan Times
3 minutes ago
- Hindustan Times
Despite Trump statements, Russia oil buys seen still on
New York/Washington : US President Donald Trump claimed on Saturday he had heard India would no longer purchase Russian oil, calling it a 'good step', days after opening an unexpected salvo at New Delhi for its close trade and military ties with Moscow. US President Donald Trump(REUTERS) 'Well, I understand India no longer is going to be buying oil from Russia. That's what I heard. I don't know if that's right or not, but that's a good step. We'll see what happens,' Trump told reporters on Friday. His remarks bear significance due to his threats of punitive measures against nations that purchase oil from Russia, which is seen as being crucial to Moscow's war on Ukraine. However, new reports on Saturday cited senior Indian officials as saying there had been no change in policy, with one stating the government had 'not given any direction to oil companies' to cut back imports from Russia. India has become one of Russia's largest oil customers since Western sanctions drove down prices, helping Moscow maintain crucial export revenues whilst providing New Delhi with cheaper energy to fuel its growing economy. Earlier in the week, Trump formalised 25% tariffs on Indian exports through an executive order covering around 70 nations, though the document notably omitted the additional 'penalty' he had previously threatened over India's Russian energy purchases – a measure that America could still take. Ministry of external affairs spokesperson Randhir Jaiswal, when asked at Friday's weekly briefing about reports claiming Indian oil companies had stopped buying Russian oil, said: 'As far as sourcing India's energy requirements is concerned, we take decisions based on the price at which oil is available in the international market and depending on the global situation at that time.' The US president has repeatedly criticised India's energy ties with Russia whilst announcing punitive trade measures. Declaring a 'massive trade deficit with India,' Trump argued that while 'India is our friend, we have, over the years, done relatively little business with them because their tariffs are far too high, among the highest in the world.' He described India as having 'the most strenuous and obnoxious non-monetary Trade Barriers of any country,' while noting that 'they have always bought a vast majority of their military equipment from Russia, and are Russia's largest buyer of energy, along with China, at a time when everyone wants Russia to stop the killing in Ukraine.' New reports on Saturday stated India will keep purchasing oil from Russia despite Trump's threats of penalties. Two Indian government sources told Reuters on Saturday, not wishing to be identified, that: 'These are long-term oil contracts. It is not so simple to just stop buying overnight.' Russia is the leading supplier to India, the world's third-largest oil importer and consumer, accounting for about 35% of its overall supplies. India imported about 1.75 million barrels per day of Russian oil from January to June this year, up 1% from a year ago, according to data provided to Reuters by sources. Justifying India's oil purchases, a second government source said India's imports of Russian grades had helped avoid a global surge in oil prices, which have remained subdued despite Western curbs on the Russian oil sector. Unlike Iranian and Venezuelan oil, Russian crude is not subject to direct sanctions, and India is buying it below the current price cap fixed by the European Union, the source said. However, sources told Reuters this week that Indian state refiners stopped buying Russian oil after July discounts narrowed to their lowest since 2022—when sanctions were first imposed on Moscow—due to lower Russian exports and steady demand. Indian Oil Corp, Hindustan Petroleum Corp, Bharat Petroleum Corp and Mangalore Refinery Petrochemical Ltd have not sought Russian crude in the past week or so, four sources told Reuters.
The Hindu
5 hours ago
- The Hindu
India will continue to buy Russian oil, government sources tell NYT
India will keep purchasing oil from Russia despite U.S. President Donald Trump's threats of penalties, two Government sources told The New York Times, not wishing to be identified due to the sensitivity of the matter. "These are long-term oil contracts," one of the sources said. "It is not so simple to just stop buying overnight." Mr. Trump last month indicated in a Truth Social post that India would face additional penalties for purchases of Russian arms and oil. On Friday (August 1, 2025), Mr. Trump told reporters that he had heard that India would no longer be buying oil from Russia. Soured relations: The Hindu editorial on Trump's 25% tariff, 'penalty' The New York Times on Saturday (August 2, 2025) quoted two unnamed senior Indian officials as saying there had been no change in Indian government policy, with one official saying the government had "not given any direction to oil companies" to cut back imports from Russia. Reuters reported this week that Indian state refiners stopped buying Russian oil in the past week, following a narrowing of discounts in July. "On our energy sourcing requirements ... we look at what is there available in the markets, what is there on offer, and also what is the prevailing global situation or circumstances," Foreign Ministry spokesperson Randhir Jaiswal told reporters during a regular briefing on Friday. Mr. Jaiswal added that India has a "steady and time-tested partnership" with Russia, and that New Delhi's relations with various countries stand on their own merit and should not be seen from the prism of a third country. The White House in Washington did not immediately respond to requests for comment. Indian refiners are pulling back from Russian crude as discounts shrink to their lowest since 2022, when Western sanctions were first imposed on Moscow, due to lower Russian exports and steady demand, sources said earlier this week. The country's state refiners — Indian Oil Corp, Hindustan Petroleum Corp, Bharat Petroleum Corp and Mangalore Refinery Petrochemical Ltd — have not sought Russian crude in the past week or so, four sources familiar with the refiners' purchase plans told Reuters. India's top oil supplier On July 14, Mr. Trump threatened 100% tariffs on countries that buy Russian oil unless Moscow reaches a major peace deal with Ukraine. Russia is the top supplier to India, responsible for about 35% of India's overall supplies. Russia continued to be the top oil supplier to India during the first six months of 2025, accounting for about 35% of India's overall supplies, followed by Iraq, Saudi Arabia and the United Arab Emirates. India, the world's third-largest oil importer and consumer, received about 1.75 million barrels per day of Russian oil in January-June this year, up 1% from a year ago, according to data provided to Reuters by sources. Nayara Energy, a major buyer of Russian oil, was recently sanctioned by the European Union as the refinery is majority-owned by Russian entities, including oil major Rosneft . Last month, Reuters reported that Nayara's chief executive had resigned after the imposition of EU sanctions and company veteran Sergey Denisov had been appointed as CEO. Three vessels laden with oil products from Nayara Energy have yet to discharge their cargoes, hindered by the new EU sanctions on the Russia-backed refiner, Reuters reported late last month.
Economic Times
7 hours ago
- Economic Times
EAM Dr S Jaishankar, NSA Doval plan trips to Russia this month
Synopsis India is reinforcing its longstanding relationship with Russia, planning high-level visits to Moscow despite pressure from the US to reduce oil imports. National Security Advisor Ajit Doval and External Affairs Minister S Jaishankar will discuss defense collaboration, regional issues, Arctic cooperation, and increased trade. ANI External Affairs Minister S Jaishankar New Delhi: India is keeping its ties with Russia steady with high level visits planned to Moscow this month amid US President Donald Trump's demand asking to reduce oil imports from Russia and threatening penalties if New Delhi failed to do Security Adviser Ajit Doval and External Affairs Minister S Jaishankar are planning Moscow trips this month, ET has learnt. While Doval could visit Moscow in early part of this month, Jaishankar is planning a trip to Russia mid-August, it has been further defence industry collaboration besides regional situation will be big on the agenda when Doval meets his Russian counterpart, according to persons familiar with the are reports that India is looking to purchase additional S-400 defence systems which had contributed to India's success during Operation Sindoor. India also plans to have MRO facilities for S-400 here. There are also unconfirmed reports that India is exploring purchase of Su-57 fighter jets from in the resource rich Arctic region and increasing Indian exports to Russia will figure high on the agenda when Jaishankar meets his counterpart Sergey Lavrov besides First Deputy Prime Minister Denis Manturov. On Friday while defending ties with Russia MEA spokesperson Randhir Jaiswal said, "India and Russia have a steady and time-tested partnership." "Our bilateral relationships with various countries stand on their own merit and should not be seen from the prism of a third country."India will host the next edition of the annual India-Russia summit this year that will enable President Vladimir Putin to travel to New Delhi for the first time since industry ties, energy ties in the backdrop of recent EU sanctions, civil nuclear partnership, Arctic cooperation besides joint roadmap for cooperation in the high-tech sector will be on the agenda of the Summit, ET had reported last monthFood security could also be on the agenda of the Summit. Putin recently mentioned following Modi's direct request, Russia increased exports of fertilisers to other issues, Russia wants India to increase its presence in a big way in the resource rich Arctic region and earmark a second site for the nuclear power plant even as it has established its presence in the Small Modular Reactor workforce is increasing in the Russian construction and textile sector and a formal agreement on manpower could be inked during the summit.
