Big investors are pulling out of profitable stock positions amid fears of September’s typical seasonal declines, leading to a tech sell-off on Tuesday. The Nasdaq and S&P 500 dropped, with Nvidia falling 3.5%. Hedge funds are reshuffling risk, selling winners in tech, crypto, and AI.

Momentum is shifting as hedge funds and asset managers sell off winners, signaling potential market moves ahead. Historically, September marks a shift in stock buying patterns with retail buyers slowing purchases and companies halting stock buybacks. Valuations are high and catalysts for further buying are limited.

Stock buying typically dries up in September as retail buyers slow down and companies halt stock buybacks for regulatory reasons. Systematic traders have exhausted their appetite for equities, leading to a potential shift in market sentiment. Larger asset managers are expected to reassess portfolios as the quarter ends in September.

Read more at Yahoo Finance: Big investors ditch tech ahead of expected September stocks slump