For months, money poured into US stocks like water through a fire hose. That hose just kinked.
US equity funds recorded $8.5 billion in net outflows for the week ending June 24, according to a Bank of America report citing EPFR Global data. It’s the first weekly outflow since March, and the timing is hard to ignore.
The bigger story sits underneath that headline number. Technology funds, the darlings of the AI-driven rally, saw a staggering $9.3 billion in outflows during the same week. That’s a record. Not a “big week” or a “notable pullback.” A record.
The AI trade hits a wall
Prior to this outflow, significant inflows had been flooding into tech and AI-themed products. Going from heavy buying to record selling in the span of days suggests something shifted in the collective investor psyche. Historical patterns show that initial outflows following extended inflow periods frequently precede increased choppiness and sector rotation.
