$11.12 billion withdrawn from US equity funds in week through Sept. 2
US investors pulled $11.12 billion from equity funds for a second straight week as rising bond yields and Middle East tensions weighed on sentiment, though strong AI company earnings provided partial support.
US equity funds recorded net outflows of $11.12 billion in the week through Sept. 2, marking the second consecutive week investors withdrew cash from US stocks. LSEG Lipper data shows this represented a decline from $22.72 billion withdrawn in the prior week. Rising bond yields and oil prices fueled by renewed tensions between Iran and the United States depressed investor sentiment following military strikes near the Strait of Hormuz. Despite macro headwinds, strong earnings from Nvidia and Dell Technologies supported equities, indicating continued robust spending on artificial intelligence infrastructure. Large-cap equity funds saw net withdrawals of $7.52 billion, a sharp reduction from $24.73 billion in the previous week. Mid-cap funds registered outflows of $572 million, while small-cap funds contributed another $1.83 billion to the total sell-off. Sector-focused funds reported net selling of $3.48 billion, with technology withdrawals totaling $1.39 billion and financial funds pulling $1.31 billion.
