A new wave of Meme stocks sees a subtle turning point? Goldman Sachs trading department clients begin shorting.

Goldman Sachs trading division said on Friday that a new wave of meme stock frenzy has boosted the stock prices of a group of small companies, making its clients "more confident" in betting against unprofitable tech stocks. A basket index of unprofitable tech stocks tracked by Goldman Sachs has risen by about 70% from its mid-April lows, but has fallen by over 3% in the past two days. Faris Mourad, Vice President of Goldman Sachs' U.S. Custom Stock Basket team, wrote in a report to clients: The focus of almost all client discussions this week has been when to take a contrarian approach to the trends in these high speculative areas (such as unprofitable tech stocks). As the week unfolded, we saw clients shift from waiting to taking action, and now they are more comfortable shorting at these levels. Goldman Sachs' clients' actions come at a time when the stock prices of companies like Kohl's Corp., GoPro, and Krispy Kreme have soared, attracting attention on Wall Street. Some market participants believe that the movements of these stocks are a signal of heightened speculative sentiment in the U.S. market. According to reports, Goldman Sachs' "speculative trading indicator" reached one of the highest levels on record this week, with bullish option trading accounting for over 61% of total U.S. options trading volume, the highest level since 2021. Meanwhile, retail trading interest in unprofitable stocks has surpassed the 2021 "meme" craze in recent times. As signs of market bubble intensify, Goldman Sachs and Citadel Securities' trading divisions have advised clients to purchase cheap hedge tools to guard against a potential stock market pullback due to multiple risks, including next week's tech giants' earnings reports and the August 1st deadline for Trump's tariffs. Noted Bank of America analyst Hartnett pointed out that as monetary policy eases and financial regulations loosen, the risk of stock market bubbles is increasing. Global policy rates have fallen from 4.8% a year ago to 4.4%, and are expected to further decline to 3.9% in the next 12 months. Hartnett reiterated the bubble risk, saying, "The larger the size of the retail, the larger the liquidity, the larger the volatility, the larger the bubble." This article is selected from "Wall Street News", written by He Hao; GMTEight editor: He Yucheng.