Investors yanked money out of US equities for the first time in three months, with technology funds bearing the brunt of a selloff that suggests the AI-fueled rally is running out of oxygen.
Bank of America’s latest fund flow data paints a stark picture: clients sold a net $14.4B in US stocks, with technology sector outflows hitting their highest level since the bank started tracking the data in 2008. That’s not a typo. The largest tech fund exodus in nearly two decades.
The smart money is heading for the exits
Here’s the thing about this selloff: it wasn’t retail investors panic-selling after a bad headline. Institutional investors led the charge, followed by hedge funds and private clients.
BofA’s June 2026 survey found that 56% of fund managers described the AI cycle as a “boom.” The survey featured responses from 198 managers overseeing $540 billion in assets.
