NEW YORK (Reuters) – U.S. investors final week pulled $four.1 billion from mutual funds and exchange-traded funds that maintain home stocks, extending a pullback from the U.S. equities market that has now lasted for 5 of the final six weeks, in accordance to knowledge launched Wednesday by the Investment Company Institute.
The withdrawals got here throughout every week by which the Federal Reserve continued its tempo of equity-friendly rate of interest cuts, serving to propel the benchmark S&P 500 to report highs. Yet considerations over the commerce conflict between the United States and China and the potential for a recession over the subsequent 12 months have weighed on investor sentiment, pushing investors into the perceived security of bonds.
For the yr to date, investors have pulled almost $118.5 billion from U.S. inventory funds. Over the identical time, bond funds have introduced in almost $366.1 billion in new belongings regardless of yields which might be traditionally low. The $11.three billion investors deposited into the class final week continued a profitable streak for bond funds that started in early August.
World inventory funds, in the meantime skilled roughly $2.7 billion in outflows, the most important weekly drop since late August. For the yr to date, investors have pulled almost $46 billion from the class.
Reporting by David Randall