Investors pull $17.2 billion from US equities in largest outflow since March

Investors withdrew $17.2 billion from US equity funds in the week ending July 1, the largest weekly outflow since March, according to a Bank of America report citing EPFR Global data. The pullback coincided with $13.9 billion in net outflows from global equity funds over the same period. A combined $17.2 billion flowed into investment-grade bonds, while $3.4 billion moved into high-yield bonds, the highest amount directed to high-yield debt in a year. Bank of America attributed the equity outflows to investor concerns over the high valuations of artificial intelligence and chip companies, as well as broader sector anxieties. The Philadelphia Semiconductor Index fell 11 percent over the last two trading sessions, underscoring the sensitivity of those valuations. Japan attracted the largest alternative inflow, drawing $1.9 billion in equity investment, its highest weekly total in seven weeks.