Goldman Sachs warns of potential $45 billion in selling pressure on US stocks in the coming month.
Data from Goldman Sachs' prime brokerage business shows that global macro hedge funds have not significantly reduced their equity holdings during the recent decline in the S&P 500. Given the large index exposure of these funds, concentrated adjustments to their positions could exacerbate stock market volatility. Goldman Sachs models estimate that S&P 500 futures face approximately $28 billion in potential selling pressure in the coming week, and $45 billion in potential selling pressure over the next month, driven by systematic trading strategies. Furthermore, SpotGamma data shows that the S&P 500 index has negative gamma exposure in the 7000-7550 point range, and hedging activities by options traders could amplify short-term price volatility. (Source: Bloomberg)