Goldman Sachs warns quants are running low on buying power for stocks.

According to Goldman Sachs' Scott Rubner, systematic money managers, also known as quants, have loaded up on over $170 billion worth of global shares in the past month, driving their exposure to the highest level since early 2022. However, with their positioning near a peak, the group is more inclined to be sellers in the coming weeks, potentially creating additional pressure for a market where caution prevails amid recession concerns and a looming deadline for US government debt ceiling. If sustained, the unwinding from quants has the potential to create additional pressure for a market where caution prevails amid recession concerns and a looming deadline for US government debt ceiling.