US Equity Funds See Fourth Consecutive Weekly Outflow Amid Inflation and Rate Hike Concerns
US equity funds experienced a fourth consecutive week of outflows as rising crude oil prices intensified inflation concerns, prompting investors to withdraw $31.44 billion in the week ending September 18. The Federal Reserve's recent rate hike added to investor caution ahead of its policy decision. Crude oil reaching four-month highs lifted Treasury yields and weighed on growth-oriented funds. Despite overall outflows from equity funds, small-cap funds attracted modest inflows while sectoral equity funds recorded $2.29 billion in net purchases—the largest in seven weeks—led by financials, consumer discretionary, and technology sectors. Meanwhile, global bond fund inflows slowed to a five-month low of $554 million, with short-to-intermediate government and Treasury funds leading gains for the 11th consecutive week.
Topics: crude_oil_prices federal_reserve inflation interest_rates investor_behavior