U.S. stock funds see first outflow in three months as tech sector trading cools

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Jinse Finance reports, June 26, citing EPFR Global data referenced in a Bank of America report, that for the week ending June 24, U.S. stock equity funds saw outflows of $8.5 billion, the first outflow in three months. Technology sector funds led the declines, recording a record outflow of $9.3 billion. A Bank of America team led by Michael Hartnett said in the report that this trend is sharply different from the previous week, when technology funds saw inflows of up to $19.2 billion, setting a historical high. Wall Street was rattled by the sell-off in major technology stocks, including a sharp drop in Apple’s share price. Although memory chip maker Micron Technology helped ease concerns about a slowdown in the tech sector with a strong sales outlook, the S&P 500 index has pulled back from its prior record high. Bank of America said overall stock funds saw outflows, with redemption volumes of $5.0 billion, while money market funds saw outflows of $25.5 billion. European funds continued to fall out of favor, recording outflows for the 11th consecutive week. Investors shifted into fixed-income funds, which attracted $16.6 billion.
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