US equity funds were seen experiencing outflows in the week to November 29, with investors taking profits after highs and at the same time being cautious ahead of several key economic reports and earnings results.
US equity funds experienced outflows of about $3.31 billion during the week, the first weekly net sell since Nov. 1 based on LSEG data. Throughout the week, market participants closely monitor key data including the Federal Reserve's "Beige Book" which looks for an insight into the upcoming rate decision by the US central bank.
US consumer spending rose modestly in October, while the annual increase in inflation was the smallest in more than 2-1/2 years, an indication that demand is slowing and this indirectly reinforces expectations that the Fed's interest rate hike campaign is over.
Analysts noted that investors took advantage of the week as benchmark equity indexes such as the Dow, S&P 500, and Nasdaq all posted gains of more than 8% in November, their best monthly performance since at least October 2022.
Investors pulled in $3.32 billion, $2.97 billion, and $500 million respectively from various equity funds of either small or mid-cap markets. US equity funds still received about $6.81 billion, their sixth straight weekly inflow.
The technology sector experienced a net selloff of $2.19 billion after three consecutive weeks of buying. Investors also pulled $526 million from health funds but put $390 million into financial funds. US bond funds lost $1.77 billion for the week after net selling of about $262 million the previous week.
