April 19 – Investors expected prolonged restrictive interest rates amid persistent inflation in a robust U.S. economy, which resulted in sharp outflows from U.S. equity funds in the seven days leading up to April 17.
Risk appetite was further reduced by the Middle East’s escalating conflict after Iran attacked Israel.
Investors offloaded US equity funds worth a net of $21.15 billion, the most in a week since December 21, 2022, according to LSEG data.

Speaking on Tuesday about recent trends in U.S. inflation, Federal Reserve Chair Jerome Powell hinted that if inflation stays high, the central bank might stick to its tight monetary policy.
The largest weekly withdrawal from U.S. large-cap equity funds since February 7 totaled $11.59 billion in net selling. During the week, there were net disposals of $2.71 billion, $2.13 billion, and $526 million from small-, multi-, and mid-cap funds, respectively.
U.S. investors offloaded consumer discretionary, healthcare, and gold & precious metal funds worth a net $701 million, $651 million and $447 million, respectively, but purchased around a net $281 million worth of financial sector funds.