The risk-off sentiment on Wall Street fueled the third-worst weekly outflow on record from U.S. equities, with technology shares falling out of favor.
U.S. stock funds bled $25.8 billion in the week through Sept. 23, according to Bank of America Corp. and EPFR Global data, in a reversal from the previous week’s biggest inflow in more than two years.
Investors exited the hottest sector of the rebound, pulling the most money out of tech funds since June 2019.
While traders were buying the dip just a week ago, sentiment has switched firmly to risk off in recent sessions, with pessimism seeping in about the prospect of further fiscal stimulus to support the world’s biggest economy.
The S&P 500 Index is on course for its fourth straight weekly drop, its longest losing streak in more than a year. That’s fueling U.S. equity underperformance versus Asia and Europe in September.