US stock funds saw investors pull back in the week ended October 7, breaking a two-week streak of inflows. Profit-taking took center stage as the S&P 500 reached a new peak before retreating under pressure from surging 10-year Treasury yields and elevated crude oil prices.
📌 Key Figures & Fund Flow Breakdown:
• -$5.11 Billion Exited US Equity Funds: Marking the first net weekly outflow since September 16.
• 7,844.52 Record High: The S&P 500 hit a historic high before easing as inflation worries mounted.
• 5.3645% Yield Peak: The benchmark 10-year US Treasury yield surged to its highest point since April 2002.
• Market Cap Outflows: Large-cap funds suffered the heaviest hit at -$14.08B, followed by Mid-caps (-$1.03B) and Small-caps (-$834M).
• Tech Resilience: Sector funds still bucked the trend with +$5.68B in inflows, dominated by Technology (+$4.53B), Utilities (+$1.18B), and Industrials (+$1.04B). • Flight to Fixed Income & Cash: US bond funds absorbed +$19.78B (led by $6.76B in short-to-intermediate Treasuries), while Money Market funds rebounded sharply with +$68.49 Billion in net inflows.
💡 Market Sentiment: With Treasuries offering multi-decade high yields, investors are locking in equity profits at peak market levels and reallocating capital into safer cash equivalents and fixed-income assets.