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Investors Pull Big Money From U.S. Single Stocks as Cash Flows Shift Overseas

Valuation worries about mega-cap tech plus shifting Fed-rate expectations pushed investors toward overseas developed markets, bonds and cash.

Overview

  • Bank of America data showed clients sold a record $14.2 billion of individual U.S. stocks in the week ending June 5, with technology names hit hardest.
  • EPFR Global data cited by Bank of America recorded $17.2 billion of net outflows from U.S. stock funds in the week to July 1 as capital moved into international developed markets.
  • LSEG Lipper fund data for the week to July 1 painted a different picture at the fund level, with $10.44 billion flowing into global equity funds and about $8.9 billion into technology sector funds.
  • Investors also shifted into safer instruments, with global bond funds drawing $14.47 billion and money market funds taking in $32.55 billion, while clients kept buying equity ETFs for an 11th straight week.
  • The mix of heavy single-name selling, renewed tech buying at the fund level, flows into Japan and Europe, and no notable inflows to cryptocurrency funds could reshape demand patterns for big-cap U.S. stocks and corporate buybacks in the weeks ahead.