Hedge funds sold out of the biggest U.S. tech stocks, and some even added bearish positions, according to data from a JPMorgan note late Thursday, just before SpaceX was set to go public on Friday.
Shares in the "Magnificent Seven" -- a group that includes some of the biggest tech names on Wall Street, namely Nvidia, Apple, Amazon. com, Alphabet, Meta, Tesla, and Microsoft, have all declined since last Friday.
The Roundhill Magnificent Seven ETF, which tracks these stocks closely, declined over 2.4% since June 5, with some analysts saying investors were clearing their decks in order to prepare for the debut of Elon Musk's Space X on Friday.
SpaceX posted a net loss of $4.94 billion in 2025, but its landmark listing targets a valuation of $1.77 trillion in a record-setting IPO, which would make it the seventh-biggest publicly traded U.S. company by market value.
Here is what the JPMorgan note said:
Magnificent Seven stocks saw market selling as investors decided to dial down their risk positions.
Some speculators jumped in to buy the dip.
In the US, software stocks were deeply sold late last week while semi conductor makers garnered "strong demand."
Meanwhile, financial firm themed ETFs were the most bought over the last week.
Seasonally, financial stocks do well at this time of year
Hedge funds were mixed on financials, with some selling banks.
Hedge funds recently bought insurance company stocks but overall, the sector is "heavily sold" in the year so far, with traders having far fewer wagers on these companies than in the past.
Funds favoured traditional asset managers over alternative asset managers.
