Hedge funds have poured billions into bets against the US stock market, anticipating a potential crash under Donald Trump’s presidency, according to a report by the Telegraph citing data from Goldman Sachs showing a sharp rise in short positions in US stocks.

The uptick in beta agents US stock signals growing unease among traders, particularly after this week’s sell-off in major tech stocks, triggered by concerns over competition from Chinese AI company DeepSeek.

In January, investors placed 10 times more bets on US stocks falling than on them rising, marking a dramatic shift from November. At that time, hedge funds had heavily backed US equities, expecting Trump’s tax cuts and trade policies to stimulate economic growth.

Following Trump’s election win, hedge funds rushed into so-called “Trump trades,” betting on a market rally. The influx of investor capital pushed total industry assets to record highs, surpassing $4.5tn (£3.6tn).