Global stocks were off net for the ninth consecutive week

Investing.com — Global stocks were sold off for the ninth consecutive week between September 6 and September 12, according to analysts at Goldman Sachs.

In a note to clients dated Friday, the investment bank said gross trading flow also saw its biggest increase in five months, “led by short selling outpacing long buying”.

Financials, healthcare, industrials and communications services were the top-bought sectors, Goldman Sachs said. In particular, the financial sector saw its biggest net buying since June 2023, after net selling in seven of the past eight weeks.

Information technology, staples and consumer discretionary were the top selling industries.

With the exception of real estate and utilities, all sectors saw an increase in gross trading activity, Goldman Sachs said.

In the previous trading week ended Friday, all three major Wall Street averages advanced and closed near two-week highs. Bets increased that the Fed could launch a 50-basis-point cut, rather than a more modest 25-basis-point cut, after its two-day meeting on Sept. 17-18 sent stocks higher.

Small caps were the key beneficiaries of increased bets on a deeper discount, with the small-cap index adding 4.4 percent for the week. These companies rely heavily on floating-rate loans to finance their operations, leaving their shares more exposed to changes in borrowing costs.

According to CME Group’s (NASDAQ: ) closely-watched FedWatch tool, on Monday the odds of policymakers making a 50-basis-point cut were 59%. At the weekend, bets between a quarter-point and half-point drop were tied, in the latest sign of the rapidly shifting debate around the cuts.

Just last week, investors, buoyed by data showing slightly hotter-than-expected output and consumer price growth in August, placed a higher chance on a quarter-point cut.

But recent media reports have suggested the case for a 50 basis point cut remains in play, while former New York Fed President Bill Dudley has said the case for such a cut is strong.