US equity funds see first weekly outflow in six weeks

Group 1 - U.S. equity funds experienced their first weekly outflow in six weeks, with a net divestment of $4.56 billion due to concerns over high tech valuations overshadowing optimism about a potential Federal Reserve rate cut [1][2][3] - The S&P 500 index rose over 3% this week, driven by expectations of a Federal Reserve rate cut, but investor caution remains due to volatility and the impact of a record 43-day U.S. government shutdown [2][3] - Large-cap funds saw a net outflow of $144 million, while mid-cap and small-cap funds experienced outflows of $1.69 billion and $885 million, respectively [3] Group 2 - U.S. bond funds continued to attract investment for the eighth consecutive week, with inflows of approximately $8.6 billion [3] - Short-to-intermediate government and treasury funds secured $4.05 billion, marking the largest weekly inflow since September 24, while general domestic taxable fixed income funds had a net inflow of $1.59 billion [4] - U.S. money market funds received inflows of $25.28 billion after two weeks of net sales [6]