Investors are souring on the technology-heavy Nasdaq 100 Index, building short positions in the futures market, according to Citigroup Inc. strategists. 

Positioning in the Nasdaq 100 is now one-sided net short at $8.1 billion, with all long positions unwound, a team led by Chris Montagu wrote in a note. Meanwhile, there’s a modest net short position in S&P 500 futures but $15 billion of long positions are still outstanding.

The bets against the tech sector reflect growing investor concern that interest rates will stay higher for longer. The Nasdaq 100, at its 2023 peak in July, was up 45% for the year. It’s since slipped 6.8% as investors realized the Fed wouldn’t be cutting rates any time soon. Bond yields have marched higher, weighing on the appeal of the sector with lofty valuations.

“Despite the extended selloff, net positioning in all markets is not overly extended. Neither are profits/losses very large,” Montagu wrote. “This leaves positioning relatively light and generally reflecting the apparent bearish sentiment globally.”

--With assistance from Michael Msika.

This article was provided by Bloomberg News.