U.S. equity funds experienced net redemptions for a fourth consecutive week through September 18, driven by four-month highs in crude oil prices, climbing Treasury yields, and the Federal Reserve’s 25 bps interest rate hike.
Key Data Highlights:
- Massive Equity Outflows: Investors withdrew $31.44 billion, led by large-cap (-$28.71B), multi-cap (-$3.16B), and mid-cap funds (-$1.73B), while small-cap funds gained +$568 million.
- Sector Fund Rotation: Sectoral equity funds drew $2.29 billion (7-week high), headed by Financials (+$1.37B), Consumer Discretionary (+$795M), and Tech (+$775M).
- Bond & Treasury Flight: Short-to-intermediate government & Treasury funds secured $3.49 billion in inflows (11th straight week), whereas municipal debt lost $1.81 billion.
- Cash Drawdowns: Money market funds shed $58.87 billion in net weekly redemptions—the largest exit since mid-July.
Higher energy prices linked to geopolitical tensions continue to drive risk aversion across Wall Street! 📊💵