Global hedge funds turned positive on US technology stocks in the week ending 18 January, upping their share purchases in the sector at the highest pace seen in two months, according to a report by Reuters.

The report cites a Goldman Sachs client note as revealing the pivot with US tech stocks, having been the most net sold sector in the week ended 6 January.

According to the note, hedge funds had their busiest trading week in the last five months as the tech-heavy NASDAQ rose 3% to close at a new all time high last week, on the back of renewed investor optimism for AI and the tech sector's biggest companies.

At the same time, hedge funds were net short in several stock sectors including healthcare, utilities and energy.