Aug 28 (Reuters) – U.S. equity funds recorded their largest weekly outflow in five months in the week to August 26, as investors reassessed the outlook for artificial intelligence ahead of Nvidia’s earnings and awaited potentially pivotal remarks from Federal Reserve Chair Kevin Warsh.
Investors withdrew a net $22.33 billion from U.S. equity funds during the week, marking the largest weekly net sales since March 18, according to LSEG Lipper data.
Nvidia on Wednesday projected a 70% rise in revenue for the next fiscal year, easing investor concerns about AI demand despite persistent supply constraints.
Market attention has shifted to Warsh’s scheduled comments at Friday’s Jackson Hole Symposium after three Fed officials cautioned that elevated inflation could prove persistent.
Investors pulled a net $24.73 billion from U.S. large-cap equity funds, marking their biggest weekly net sales in five months. However, they added $2.24 billion to mid-cap funds and $794 million to small-cap funds.
U.S. sectoral funds attracted about $505 million in net inflows. Technology funds led the gains, drawing $1.81 billion, while financial-sector funds recorded net sales of $1.42 billion.
U.S. bond funds remained popular for a 19th consecutive week, attracting net inflows of $7.12 billion.
Investors bought $3.3 billion worth of short-to-intermediate government and Treasury funds, their largest net purchase since July 8. Municipal debt funds and short-to-intermediate investment-grade funds also recorded notable inflows of $1.44 billion and $784 million, respectively.
Money market funds, meanwhile, posted a second consecutive weekly outflow, totaling $8.58 billion.
(Reporting by Gaurav Dogra; Editing by Chizu Nomiyama )
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