US equity funds post weekly outflows on tech weakness, hawkish Fed bets

Key Facts

Reflecting a decline in risk appetite, U.S. equity funds recorded net outflows in the week ending June 24, 2026, according to Reuters. The outflows were driven by technology sector weakness and expectations of a hawkish Federal Reserve, prompting investors to reduce equity exposure.

The outflows came despite the U.S. Composite PMI reading at 52.2 (close of June 23) indicating continued expansion in the private sector, while Fed's Waller speech reiterated the focus on fighting inflation. Analysts point to concerns over debt-funded spending in the tech sector reinforcing a cautious stance.

Investors are closely watching upcoming economic data and Fed commentary to gauge whether this trend continues. In the absence of fresh positive catalysts, outflows may remain dominant in the near term as markets focus on second-quarter corporate earnings.