Hedge funds accelerate selling of US stocks as risk-averse sentiment rises amid tariff uncertainties.

Despite the S&P 500 index continuing to climb near historic highs, smart money on Wall Street has consistently maintained a bearish stance. A report from Goldman Sachs Group's prime brokerage division shows that hedge funds have been continuously reducing their holdings of US stocks over the past four weeks, with the selling volume far exceeding short covering. Of particular note is that funds are rapidly reducing their positions in the technology, media, and telecommunications sectors ahead of earnings season, at the fastest rate in a year - these sectors have been the main drivers of the stock market rebound since April. This cautious strategy has helped hedge funds successfully avoid the selling frenzy triggered by April's tariffs. Although they may miss out on the rally that led the S&P 500 index to hit a new high in July, the retreat of these seasoned market participants is still worth noting in the context of lingering trade war concerns and the upcoming seasonal weakness in the stock market. "Fund managers continue to remain highly cautious because many fundamental risks have not been eliminated," noted Jonathan Caplis, CEO of hedge fund research firm PivotalPath.