Recent market activity indicates a significant shift in hedge fund strategies, with panic buying leading to the highest stock purchases since December 2023. Asset managers have also reached near-record long positions on US stock futures, surpassing 1 million contracts, the highest level since before the COVID-19 crash. Over the past two years, net positions have surged fivefold. Additionally, hedge funds have rapidly divested from utility stocks, marking the fastest selling pace in history, according to Goldman data. This trend reflects a broader rotation from defensive sectors, such as utilities, into cyclical stocks, particularly financials, as hedge funds engaged in aggressive buying of bank stocks, driven by positive earnings reports. This buying spree is noted as the most intense since 2021.