This week, QQQ is set to test support ahead of Big Tech earnings and developments at the Fed. While hedge funds unwound their AI-related long positions, some reports indicated that fund inflows into mega-cap stocks remained robust.
Last week, it was noted that hedge funds had completely unwound their AI-related long positions established since January 2025 in just 5 business days, while other reports indicated that selling in AI stocks had not spread to the largest technology companies. The source was reported to be Goldman Sachs.
Goldman Sachs wrote that net fund inflows into mega-cap technology stocks had remained relatively robust despite volatile performance in the tech sector over the past month. In addition, the net allocation ratio to the Magnificent Seven was said to have reached a record high.