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US stocks moved higher as investors tracked signs of progress in talks between Washington and Tehran. A possible deal to reopen the Strait of Hormuz helped ease pressure on oil prices and supported risk appetite across global markets.
Technology shares remained a key focus on Wall Street. Hedge funds increased exposure to the sector, while oil’s sharp drop gave investors another reason to watch equities, energy stocks, and inflation-linked trades this week.
Technology stocks drew strong hedge fund demand last week, according to a Goldman Sachs note sent to clients late Friday. The bank said speculators bought tech shares at the fastest pace in nearly three months.
Goldman Sachs said buying took place across every major region except Europe. In dollar terms, North America and Asian emerging markets led the move, showing that investors still favor tech despite wider geopolitical risks.
Hedge funds also covered short positions in some stocks. That means they bought back shares tied to earlier bets on price declines. At the same time, they added long positions, which reflect expectations for further gains.
Semiconductor-linked manufacturers and software companies attracted fresh buying. However, hedge funds sold communications equipment firms and IT services providers, showing that demand remained selective within the broader technology trade.
AI-linked companies stayed near the center of market activity. Investors continued to favor firms that may gain from artificial intelligence spending, mainly in semiconductors, chip manufacturing, and software.
Goldman Sachs said hedge fund portfolios now hold their largest technology positions relative to the MSCI World Index in more than five years. Bets on global information technology stocks also hover near record levels dating back to 2016, when Goldman’s Prime Brokerage unit began tracking these trades.
The trend shows that AI remains a major market theme. However, the buying also raises questions about crowded positioning. Large hedge fund exposure can support rallies, but it can also add pressure during sharp market pullbacks.
For now, the tech trade remains one of the main drivers of the US stock market today. Investors are watching chip demand, AI spending plans, earnings forecasts, and valuation levels across major technology names.
Oil prices fell after President Donald Trump said talks with Iran were moving forward. Trump said negotiations over an interim deal to extend the ceasefire and reopen the Strait of Hormuz were ‘proceeding nicely.’
Brent crude dropped below $100 a barrel during the session, while US crude also declined. Lower oil prices helped calm concerns about fuel costs, inflation, and pressure on consumers.
Talks remain active, but officials have not finalized the deal. A US official said there was an agreement in principle under which Iran would reopen the waterway. However, final terms still require approval from several sides.
Trump also warned that there would be no deal unless all sides accepted the terms. “It will only be a Great Deal for all or, no Deal at all — Back to the Battlefront and shooting, but bigger and stronger than ever before,” he said.
The Strait of Hormuz remains a key focus for markets as it carries a large share of global energy flows. Any reopening would ease supply concerns and may reduce near-term pressure on crude prices.
Even so, investors are watching unresolved issues. These include free passage for ships, the release of frozen Iranian funds, and the wider ceasefire framework involving Israel and regional groups.
US stocks may also react to bond yields, Federal Reserve signals, and corporate earnings this week. Lower oil prices can help market sentiment, but traders still need clarity on inflation and interest-rate expectations.
Meanwhile, technology stocks remain the main equity story. Hedge fund positioning near record highs shows strong confidence in AI-linked names, while also making the sector more sensitive to any shift in earnings, guidance, or global risk appetite.
Also Read: Bitcoin News Today: BTC Price Rebounds Toward $77K as Trump Signals Progress on Iran Peace Deal
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