U.S. investors pull funds from U.S. equities at the fastest pace in eight weeks amid geopolitical fears.
U.S. equity funds witnessed the sharpest weekly net sales in eight weeks in the seven days to March 4 as investors cut risk exposure amid concerns over the U.S.-Israeli conflict with Iran and its potential impact on inflation and the interest-rate outlook.
Investors divested a net $21.92 billion of U.S. equity funds during the week in their largest weekly net sales since January 7, data from LSEG Lipper showed.
As the conflict in the Middle East entered its seventh day on Friday, oil prices were on track for the biggest weekly gains since early 2022, fanning worries of inflation, potentially delaying rate cuts by the U.S. Federal Reserve.
U.S. growth funds suffered $11.15 billion worth of outflows, the biggest for a week since December 17, 2025. Investors still bought $146 million worth of value funds, logging a fourth weekly net purchase.
Sectoral funds, meanwhile, saw weekly inflows of $1.2 billion as investors snapped up industrials, utilities, and metals and mining sector funds of $1.65 billion, $671 million, and $582 million, respectively.
Safe-haven demand widened weekly money market fund inflows to $22.51 billion, an eight-week high.
U.S. bond funds attracted a ninth weekly net purchase, amounting to $7.29 billion.
Short-to-intermediate investment-grade funds, municipal debt funds, and short-to-intermediate government and treasury funds saw significant net purchases of $1.71 billion, $1.44 billion, and $929 million, respectively.