US Equity Funds Suffer Fourth Straight Week of Outflows Amid Inflation Fears

US equity funds experienced their fourth consecutive week of outflows, totaling $31.44 billion in net redemptions, according to LSEG Lipper data.

The decline was largely driven by rising crude oil prices, which reached four-month highs and fueled inflation concerns.

Investors withdrew significant amounts from various fund categories, including US large-cap, mid-cap, and multi-cap funds, which saw outflows of $28.71 billion, $1.73 billion, and $3.16 billion, respectively.

In contrast, small-cap funds attracted $568 million in inflows during the week.

The Federal Reserve's decision to raise interest rates by 25 basis points on Wednesday also contributed to investor caution, as it signaled further tightening may be necessary to curb inflation fueled by higher energy costs linked to the war in Iran.