U.S. equities saw the largest net selling in eight weeks.
Seven of 11 sectors were net sold, led by staples (NYSEARCA:XLP), communication services (XLC), consumer discretionary (XLY), and information technology (XLK), as per Goldman Sachs’ U.S. Equity Weekly Rundown report released on Friday.
On the flip side, health care (XLV), materials (XLB), and energy (XLE) were the sectors most net bought.
The most sold sector, Staples (XLP), witnessed the largest net selling since April 2020.
Additionally, most of its subsectors, including staples distribution and retail and household products, were net sold.
“Hedge funds have net sold U.S. staples in five of the last five weeks – sector long/short ratio ended the week at 1.19 standard deviations (or SDs), compared to a year-to-date peak of 1.58 SDs in early Sep, in the 36th percentile vs. the past year,” the report stated.