Goldman Sachs revealed that institutional investors sold $21.6 billion worth of Nasdaq futures, a record amount according to the bank’s tracking. This sale pushed institutional net positioning on Nasdaq futures into negative territory for the first time since May 2025, meaning they are now collectively short the Nasdaq or have significantly reduced their long exposure. JPMorgan and Bank of America also flagged net selling activity in recent weeks, though their specific figures and methodologies differ. The trade occurred in August, a period of reduced liquidity in futures markets due to skeleton trading desks during summer, suggesting the actual market footprint could be even larger than the $21.6 billion notional figure indicates. This shift increases the risk of a short squeeze if a catalyst forces institutions to cover their positions.
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