Equity Funds See $1.58B Outflow Ahead of Jobs Report

US equity funds saw significant outflows last week as investors cashed in gains after a record-setting market rally and awaited this Friday's July jobs report. The Labor Department's data will provide crucial insights into interest-rate expectations, which has been a major driving force behind the recent market surge.

The S&P 500 rebounded about 6.5% from its previous low of 7,313.92 to reach a record high of 7,793.68 on Wednesday, buoyed by strong results from companies including Amazon, Caterpillar, and Palantir Technologies.

Investors divested a net $1.58 billion worth of US equity funds during the week, partly reversing the prior week's $11.77 billion net investments, according to LSEG Lipper data.