According to LSEG data, investors sold $22.43 billion worth of US stock funds in the past week, marking the largest weekly outflow since December 2022. This is also the fifth consecutive week of net selling, reflecting ongoing concerns about the US economy and a cautious stance ahead of the US presidential election.
Weak consumer confidence indices last week heightened worries about the US job market, leading investors to fear that the Federal Reserve's recent 50 basis point rate cut may signal a significant economic slowdown.
By category, large-cap US stock funds experienced the largest outflows, with $15.23 billion withdrawn, the most since December 2022. Small-cap and mid-cap US stock funds saw outflows of $2.34 billion and $998 million, respectively.
Sector-wise, investors pulled $539 million from essential commodities, reversing a three-week trend of net buying. Real estate, industrial, and financial sectors each had outflows of around $400 million.
Conversely, US bond funds attracted $6 billion in net inflows over the past week, marking the seventeenth consecutive week of inflows. Short to mid-term US Treasury funds saw the highest inflows in four weeks, amounting to $3.13 billion. US general domestic taxable funds and short to mid-term investment-grade funds also recorded significant net buying, with $2.21 billion and $1.17 billion, respectively.
Moreover, US money market funds saw a net buy of $112.57 billion, the largest weekly net buy since December 2020.
