Economy
Investors Pull $6.65 Billion From US Equity Funds as AI Earnings Fuel Caution
US equity funds saw their first weekly outflow in three weeks in the week ended October 28, as investors grew cautious ahead of earnings from major AI hyperscalers, LSEG Lipper data showed.
Photo: Forextime.com / Wikimedia Commons (CC BY 2.0). Photo shows a stock market concept, not fund flows.
US equity funds recorded their first weekly outflows in three weeks in the week ended October 28, as investors grew cautious ahead of earnings from major artificial intelligence hyperscalers amid concerns about the rising cost of their AI build-outs.
Investors withdrew a net $6.65 billion from US equity funds during the week, marking the first weekly outflow since October 7, according to LSEG Lipper data cited by Reuters.
Microsoft reported a strong cash-flow beat earlier in the week and forecast robust cloud growth, offering fresh evidence that its substantial AI investments were paying off. Alphabet and Amazon, however, disappointed investors with their results.
US large-cap funds recorded $3.8 billion of outflows, partly reversing inflows of $8.72 billion the prior week. Investors also shed mid-cap funds of $2.11 billion, small-cap funds of $832 million and multi-cap funds of $303 million.
Not all of the money left the market. Sectoral funds recorded net weekly inflows of $3.52 billion, the largest in three weeks, driven largely by $4.54 billion in net purchases of technology funds. Financial and healthcare sector funds saw outflows of $713 million and $701 million, respectively.
US bond funds attracted $2.04 billion, as demand recovered after a net $969 million of sales in the prior week. Money market funds, meanwhile, recorded net outflows of $47.66 billion, following roughly $14.97 billion in inflows the previous week.
Source: Reuters
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