U.S. Equity Funds See Record Outflows Amid Rising Oil Prices
U.S. equity funds experienced significant outflows in the week through September 9, with investors withdrawing $32.27 billion — a nine-month high and the largest since December 17, 2025. The selling pressure was driven by rising oil prices amid tensions related to Iran, which pushed West Texas Intermediate crude futures above $104 per barrel for the first time in four months. This has heightened concerns about inflation persisting into September, with recent producer price data showing elevated levels and expectations that the Federal Reserve may raise interest rates soon. Large-cap funds saw record outflows of $40.44 billion during the week, while mid-cap funds recorded net sales of $682 million. In contrast, multi- and small-cap funds attracted inflows totaling nearly $3.79 billion. Technology and financial sectoral funds were among those gaining investor interest with combined inflows exceeding $2.5 billion. Meanwhile, U.S. bond funds continued their 21st consecutive week of net purchases at $6.56 billion, while money market funds saw a sharp reversal from the previous week's gains.
