According to The Kobeissi Letter, US technology stocks are underperforming in 2025, with their relative price performance versus global technology stocks dropping to 1.6 points, the lowest level in approximately 18 months. Additionally, the ratio of US tech stocks compared to US non-tech stocks has declined to 1.5 points, also marking a significant low. This trend signals a shift in market momentum away from US tech equities, suggesting traders should closely monitor sector rotation, reassess portfolio allocations, and consider risk mitigation strategies as capital flows may increasingly favor global tech or domestic non-tech sectors (source: The Kobeissi Letter, Twitter, May 6, 2025).

According to The Kobeissi Letter, hedge funds have executed the second-largest sell-off of global technology stocks in five years, as per Goldman Sachs data. This significant activity primarily involved US tech stocks, which constituted 75% of the net selling. This sell-off was only surpassed by the early August 2024 sell-off, indicating a notable shift in hedge fund investment strategies.