Hedge funds purchased U.S. tech stocks at the fastest pace since mid-2025, with semiconductor and semicap companies leading net long additions. This buying spree explains September gains in stocks like INTC, BE, and NBIS, though the timing coincided with an essay release that may have caused incorrect repricing of AI infrastructure and capex growth in a supply-tight computing environment.
Stock markets declined for a fourth consecutive day as investors assessed rising Treasury yields and oil prices ahead of an inflation report. The Fed futures market priced in a 62% probability of a rate hike at next week's policy meeting, with the 2-year yield climbing 10 basis points to 4.53% as traders brace for prolonged higher rates. Tech stocks led the decline amid geopolitical tensions in the Middle East.