Global Stock Funds Experience Largest Outflow of the Year Amid Market Uncertainty

Global stock funds experienced a significant outflow of $2.8 billion in the week leading up to Wednesday, marking the largest weekly outflow this year, according to Bank of America. This shift indicates a potential souring of sentiment in global financial markets. The U.S. S&P 500 index has declined by over 10% from its recent peak, entering correction territory. Uncertainty surrounding U.S. trade policies is contributing to investor unease. U.S. government bond funds saw substantial inflows, reaching $6.4 billion, the highest weekly inflow since August. This movement suggests a "risk-off" approach among investors. While U.S. stock funds experienced outflows of $2.8 billion, European equities saw inflows of $5 billion. Real estate stocks faced the largest outflow since May 2022, totaling $1.2 billion, and high yield bond funds experienced a $2.3 billion outflow, the biggest in 12 weeks.