Hedge Funds Slash Tech Stakes as Magnificent Seven ETF Falls 2.4% Pre-SpaceX IPO
GOOG•Hedge funds cut positions in the top U.S. tech names including Alphabet, contributing to a 2.4% drop in the Magnificent Seven ETF since June 5 as investors prepared for SpaceX’s $1.77 trillion IPO. Software stocks bore the brunt of sales while semiconductor names saw strong purchases and financial ETFs attracted inflows.
1. Hedge Funds Reduce Tech Exposure
Trading metrics revealed hedge funds slashed holdings in top U.S. tech names, including Alphabet, contributing to a collective pullback within the Magnificent Seven group.
2. Sector Rotation Accelerates
Software stocks endured heavy selling while semiconductor names attracted strong buying interest and financial-focused ETFs achieved the largest weekly inflows, signaling a broad shift in fund allocations.
3. Implications for Alphabet Outlook
The repositioning ahead of SpaceX’s planned $1.77 trillion IPO could heighten volatility for Alphabet shares as sector rotations and IPO-related capital demands influence investor sentiment.
