US Equity Funds See $31.44 Billion Weekly Outflow
Investors pulled $31.44 billion from US equity funds last week. Crude oil prices hit four-month highs. The Federal Reserve raised rates by 25 basis points.
US equity funds recorded net redemptions of $31.44 billion for the week ending September 18. This marks the fourth consecutive week of capital withdrawal. The figure closely matches the $32 billion taken out in the prior week. LSEG Lipper data confirms the steady decline in investor appetite for equities.
Rising crude oil prices drove the caution. Energy costs hit four-month highs during the period. This dynamic lifted Treasury yields and intensified inflation fears. The Federal Reserve responded by raising interest rates by 25 basis points on Wednesday. Officials signaled that further tightening may be necessary to control inflation linked to the war in Iran.
Large Cap Funds Face Heavy Redemptions
Large-cap funds lost $28.71 billion in the week. Mid-cap funds saw withdrawals of $1.73 billion. Multi-cap funds recorded outflows of $3.16 billion. Small-cap funds were the exception, attracting $568 million in net inflows. This divergence highlights a shift toward smaller, potentially less rate-sensitive companies.
Sector Flows Show Selective Demand
Equity sectoral funds captured $2.29 billion in weekly inflows. This is the highest amount in seven weeks. Financials led the group with $1.37 billion in net purchases. Consumer discretionary funds gained $795 million. Technology stocks attracted $775 million. These sectors outperformed the broader market despite the overall equity retreat.
Bond Funds See Mixed Inflows
Global bond funds received $554 million in net purchases. This is a five-month low. Short-to-intermediate government and Treasury funds attracted $3.49 billion. That marks an eleventh consecutive week of inflows. Municipal debt funds lost $1.81 billion. Short-to-intermediate investment-grade funds saw outflows of $817 million. Money market funds recorded $58.87 billion in outflows, the largest weekly withdrawal since July 15. GN auto markets/energy: crude oil prices reported the energy trend context.
