Key facts
- Investors withdrew $12.57 billion from U.S. equity funds in the week ending June 10.
- This is the first weekly outflow for U.S. equity funds since May 20.
- Technology sector funds attracted $4.39 billion in net inflows.
- U.S. bond funds saw inflows totaling $12.08 billion.
- Money market funds experienced net outflows of $16.34 billion.
Global equity funds experienced a third consecutive week of inflows, totaling $3.32 billion, as investors continued to favor technology stocks amid hopes for an artificial intelligence-driven rally. However, U.S. equity funds saw their first net outflow in three weeks, with investors pulling $12.57 billion due to caution over potential market selloffs and expectations that the Federal Reserve might maintain a hawkish stance for longer.
Despite the overall outflow from U.S. equities, the technology sector remained a strong draw, attracting $4.39 billion in net purchases for its tenth consecutive week. Financial sector funds also saw significant investment. U.S. large-cap, mid-cap, and small-cap funds all recorded net sales.
In contrast to equity funds, U.S. bond funds experienced robust inflows, reaching $12.08 billion, their highest in three weeks. Investors favored short-to-intermediate investment-grade funds and government/treasury funds. Money market funds, however, saw substantial net sales of $16.34 billion after significant inflows the prior week.
Investor sentiment regarding Federal Reserve rate hikes saw some shift, with October hike odds easing slightly amid hopes for an Iran-U.S. peace deal, though strong jobs and inflation data had previously fueled rate-hike bets.