Massive outflow of investments from US stock market
2022.12.09 07:56
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Massive outflow of investments from US stock market
Budrigannews.com – In the week leading up to December 7, investors worried about the Federal Reserve’s rate hikes, and data showed a rebound in employment and a pick up in the services sector. As a result, U.S. equity funds experienced massive outflows.
The largest weekly withdrawal from U.S. equity funds since April 2021 was $26.66 billion, according to data from Refinitiv Lipper.
Graphic: Reserve streams: US equities, bonds, and money market funds: Reports in November that showed higher-than-expected nonfarm payroll additions and positive services industry activity raised expectations that the Federal Reserve will remain more hawkish than anticipated.
Financial backers were additionally stressed as the greatest U.S. banks including Goldman Sachs (NYSE:), Bank of America and J.P. Morgan (NYSE:), warned of a recession as consumer demand was threatened by inflation.
Selling continued for a third consecutive week in both U.S. equity growth funds, which saw withdrawals totaling $9.91 billion and value funds, which saw net disposals totaling $2.03 billion.
More Berkeley will refrain from investing
Graphic: Flows of cash: US growth and value funds, sectoral funds lost $1.27 billion, $761 million, and $527 million, respectively, in outflows, according to data.
Graphic: Flows of cash: US equity sector funds, on the other hand, U.S. bond funds saw a net inflow of $992 million after four weeks of weekly outflows.
After selling for three weeks in a row, U.S. taxable bond funds made $886 million in net purchases, while municipal bond funds lost $53 million.
In their largest weekly net purchase since November 16, U.S. investors purchased high-yield bond funds worth $318 million and government bond funds worth $1.06 billion. Still, $794 million went out of general domestic taxable fixed income funds.
Graphic: Reserve streams: U.S. money market funds, on the other hand, received $36.19 billion in inflows, the highest for a week since Nov. 2.
