Hedge Funds Increase Short Bets as Tech Stocks Lead Sell-Off

Hedge funds are turning more bearish on stocks, with major short positions placed on Nvidia, AMD, and Tesla, according to Morgan Stanley. Wednesday saw one of the largest single-day stock sell-offs this year, driven mainly by the technology sector.

This cautious sentiment isn’t confined to the U.S. Hedge funds also pulled back from European markets, selling stocks in construction, financial, and energy sectors, signaling a broader shift in investment strategy.