Hedge Funds Lead Record Net Selling in March as Trade War Fears Intensify

In March, global hedge funds recorded the largest net selling of stocks in 12 years, according to a note from Goldman Sachs' Prime Desk. The report highlights that heavy selling occurred during four consecutive sessions at the end of the month and in 15 out of 21 trading sessions overall. Single stocks drove this trend, making up 94% of the selling, marking the largest monthly notional net selling on record.

Market Impact and Investor Concerns

• Global Downturn:
  Global equity markets continue to trend lower, with the S&P 500 down 4.2% year-to-date. In contrast, safe-haven assets have attracted significant attention, as the XAU/USD pair reached a new record high this week.

• Trade War Fears:
  Investors are increasingly worried about a potential global trade war and its adverse effects on economic growth. These concerns are driven by President Donald Trump's plan to impose a new round of tariffs—widely referred to as “liberation day” tariffs—which are expected to be announced on Wednesday at 4:00 PM ET. These tariffs could target a broad range of U.S. trading partners, intensifying fears of a recession.

• Policy Uncertainty:
  Trump's history of announcing and delaying tariffs has added to the market's unease. The upcoming announcement could further disrupt global trading relationships and fuel additional market volatility. Meanwhile, Bank of America FX strategists note that while high tariffs might eventually hurt the U.S. economy more than other regions, the short-term risk-off sentiment is currently supporting the U.S. Dollar Index Futures.

Monitoring the Macro Landscape

For investors seeking real-time insights into how these macroeconomic trends and policy uncertainties are affecting the broader market, key economic indicators offer valuable context. Detailed data on inflation, growth, and market sentiment can be tracked through the Economic Indicators API.