U.S. equity funds experienced their largest weekly outflow in 12 weeks by Sept. 4, driven by heightened investor anxiety about the economic outlook as they awaited crucial labor market data.
According to LSEG data, investors disposed of a net $11.73 billion worth of U.S. equity funds during the week, registering a fourth weekly outflow in five weeks.
A lackluster U.S. manufacturing report on Tuesday reignited investor concerns about economic growth, ahead of the crucial non-farm payrolls report due at 8:30 a.m. ET (1230 GMT). This upcoming report could provide further insights into the economic situation and influence the potential magnitude of an interest rate cut this month.
By segment, U.S. large cap funds observed a weekly net sale of $4.28 billion, the biggest in three weeks. Small-cap, mid-cap and multi-cap funds also posted outflows, valued at $1.77 billion, $1.34 billion and $667 million, respectively.
The technology sector faced about $879 million worth of net sales, the biggest weekly outflow in six weeks. Investors, meanwhile, bought financial sector funds for the fourth successive week, worth about $418 million.
Investors, meanwhile, funneled a net $45.81 billion worth of investments into the safety of U.S. money market funds, extending their purchases into a fifth consecutive week.
U.S. bond funds, meanwhile, attracted inflows for the 14th week in a row, recorded at $2.23 billion on a net basis.
US short-to-intermediate investment-grade, general domestic taxable fixed income and municipal debt funds saw significant purchases, worth about $3.28 billion, $2.03 billion and $963 million, respectively.
Short-to-intermediate government & treasury funds, meanwhile, witnessed about $5.53 billion worth of net selling, reversing a net $4.84 billion worth of inflow in the prior week.
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