In the week ending July 20, US Equity Funds Report had its highest weekly outflow in five weeks as cautious investors prepare for the Federal Reserve’s policy meeting the following week.
The largest weekly outflow from U.S. equities funds since June 15 was $8.45 billion, according to Refinitiv Lipper data.
Also, know about how Inflation Dominates Post-earnings.
In an effort to balance the dangers of persistently high inflation with the chances of a recession, the Fed is anticipated to increase policy rates by an additional 75 basis points at the conclusion of its meeting on July 26–27.
After making modest purchases the week before, U.S. growth funds reported outflows of $3.46 billion, while investors sold value funds for $1.62 billion in the fourth consecutive week of net selling.
Bond fund sales were a net $4 billion, a significant increase from the $371 million in sales the week before.
Investors sold $897 million worth of U.S. municipal bond funds, their first weekly net selling in three weeks while selling $3.43 billion worth of U.S. taxable bond funds.
Outflows of $3,008 million, $1,998 million, and $1,060 million, respectively, were experienced by short/intermediate investment-grade funds, short/intermediate government & treasury funds, and high yield funds in the United States.
Money market funds had a third weekly inflow of $4.28 billion despite purchases declining by around 57% from the prior week.
