Investors Scale Back US Stock Exposure Before Tech Reports
US equity funds recorded their first weekly outflows in three weeks in the week ended October 28, as investors grew cautious ahead of earnings from major AI hyperscalers amid concerns about the rising cost of their AI build-outs.
Investors withdrew a net $6.65 billion from US equity funds during the week, marking the first weekly outflow since October 7, according to LSEG Lipper data.
Microsoft (MSFT.O) reported a strong cash-flow beat earlier this week and forecast robust cloud growth, offering fresh evidence that its substantial AI investments were paying off. However, Alphabet (GOOGL.O) and Amazon (AMZN.O) disappointed investors with their results.
Microsoft (MSFT.O) reported a strong cash-flow beat earlier this week and forecast robust cloud growth, offering fresh evidence that its substantial AI investments were paying off. However, Alphabet (GOOGL.O) and Amazon (AMZN.O) disappointed investors with their results.
Municipal debt funds, general domestic taxable fixed-income funds and inflation-protected funds recorded net purchases of $1.74 billion, $1.31 billion and $1.08 billion, respectively.
Meanwhile, short- to intermediate-term government and Treasury funds and short- to intermediate-term investment-grade funds saw outflows of $2.48 billion and $1.59 billion, respectively.
Money market funds recorded net outflows of $47.66 billion, following roughly $14.97 billion in inflows the previous week.
This article was first reported by Reuters
