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$165 Billion Stock Selloff Looms as Goldman Flags Rising Leverage
Key takeaways
- JPMorgan estimates that quarter-end rebalancing could trigger a $165 billion stock selloff before June ends, raising the risk of sharp moves in crowded technology trades.
- The warnings come from Goldman Sachs and JPMorgan, two of the biggest forces in equity markets.
- Goldman Sachs prime brokerage data has tracked leverage rising for over a year.
JPMorgan estimates that quarter-end rebalancing could trigger a $165 billion stock selloff before June ends, raising the risk of sharp moves in crowded technology trades.
The warnings come from Goldman Sachs and JPMorgan, two of the biggest forces in equity markets. Both point to the same risk, that leveraged and concentrated positions could amplify any pullback once mechanical selling begins.
Goldman Sachs prime brokerage data has tracked leverage rising for over a year. Gross hedge fund leverage reached about 294% in June 2025, a five-year high, Reuters reported.
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