Key facts
- Investors withdrew a net $6.65 billion from US equity funds in the week ended October 28.
- US large-cap funds saw $3.8 billion in outflows, while mid-cap funds shed $2.11 billion and small-cap funds $832 million.
- Technology sector funds attracted $4.54 billion in net purchases, driving overall sectoral fund inflows.
- US bond funds attracted $2.04 billion in inflows.
- Money market funds recorded net outflows of $47.66 billion.
US equity funds experienced their first weekly outflows in three weeks, totaling $6.65 billion, as investors grew cautious ahead of earnings reports from major AI hyperscalers. Concerns over the rising costs associated with AI build-outs contributed to the sentiment. While Microsoft reported strong results and cloud growth, Alphabet and Amazon disappointed investors. Large-cap funds saw outflows of $3.8 billion, with mid-cap and small-cap funds also experiencing withdrawals. Technology sector funds, however, saw significant inflows, driven by $4.54 billion in net purchases. US bond funds attracted $2.04 billion, while money market funds recorded substantial outflows of $47.66 billion.