Goldman Sachs Warns of Record Shorting in U.S. Stocks Amid AI Concerns

News Flash 2026-02-10 09:16

Goldman Sachs has highlighted a surge in short selling of U.S. stocks by hedge funds, driven by fears of AI disrupting traditional business models. The nominal short interest in individual stocks reached a record high since 2016, with hedge funds' short selling volume from January 30 to February 5 outpacing buying by a 2:1 ratio. This marks the fourth consecutive week of net selling by hedge funds, with the pace of selling at its highest since April last year. The market turbulence is linked to advancements in AI technology, particularly following the launch of a new tool by Anthropic that automates tasks across various industries. This development led to a significant sell-off, with 164 stocks in sectors like software and financial services losing approximately $611 billion in market value. Despite a rebound in U.S. stocks last Friday, the Nasdaq 100 index recorded its worst week of the year, indicating ongoing market fragility.

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