Investors pull money from US equity funds ahead of AI hyperscaler earnings
SPY•US equity funds saw $6.65 billion in net outflows in the week ended October 28, their first weekly outflows in three weeks, as investors grew cautious about AI build-out costs ahead of major hyperscaler earnings. Technology funds drew $4.54 billion, while bond funds attracted $2.04 billion.
1. Equity fund outflows
Investors withdrew a net $6.65 billion from US equity funds in the week ended October 28, the first weekly outflow since October 7. Large-cap funds lost $3.8 billion, mid-cap funds $2.11 billion, small-cap funds $832 million and multi-cap funds $303 million.
2. Technology draws inflows
Sector funds recorded $3.52 billion in net inflows, their largest in three weeks, driven by $4.54 billion in purchases of technology funds. Financial and healthcare funds saw outflows of $713 million and $701 million, respectively. Investors grew cautious ahead of major AI hyperscaler earnings amid concerns about rising AI build-out costs; Microsoft reported a strong cash-flow beat and forecast robust cloud growth, while Alphabet and Amazon disappointed investors with their results.
3. Bond and money funds
US bond funds attracted $2.04 billion after $969 million in net sales the prior week. Money market funds recorded $47.66 billion in net outflows, following about $14.97 billion in inflows the previous week.
