Global hedge funds have moved to cover their bearish bests against US-listed companies prompted by the unexpected rally in US shares following last week's Federal Reserve meeting, according to a report by Reuters.

The report cites a client note issued by UBS and seen by Reuters as revealing that the inflows to US stocks last week was largely driven by significant short covering on Thursday and Friday, with long/short funds buying back shares to close positions betting that US stocks will fall.

The move came after Fed Chair Jerome Powell indicated that the US central bank's programme of tightening monetary policy was at an end.

The S&P 500 index .SPX rose 1.6% while Nasdaq .IXIC jumped 1.9% over the last three days of the past week.

According to UBS, hedge funds also bought European and Asian stocks cover short bets.