U.S. Equity Funds See Biggest Outflow in Five Months

U.S. equity funds suffered their largest weekly outflow in five months in the week ended August 26, as investors reassessed the outlook for artificial intelligence ahead of Nvidia’s earnings and awaited potentially important comments from Federal Reserve Chair Kevin Warsh. According to LSEG Lipper data, investors withdrew a net $22.33 billion from U.S. equity funds, the biggest weekly net outflow since March 18.

Large-cap funds bore the brunt of the selling, with investors pulling a net $24.73 billion—their largest weekly outflow in five months. By contrast, mid-cap funds attracted $2.24 billion and small-cap funds received $794 million. Despite broader equity withdrawals, sector funds saw about $505 million in inflows, led by technology funds with $1.81 billion, while financial-sector funds recorded $1.42 billion in outflows.

Bond funds continued to attract investors, marking their 19th consecutive week of inflows with $7.12 billion added. Short-to-intermediate government and Treasury funds drew $3.3 billion, their biggest inflow since July 8. Attention now turns to Warsh’s remarks at the Jackson Hole Symposium, while Nvidia’s forecast for a 70% rise in next fiscal-year revenue has helped ease concerns over the strength of AI demand.

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