Institutional Clients Have Been Selling US Stocks for the Fourth Consecutive Week, Hedge Funds and Retail Investors Become Net Buyers

BlockBeats News, July 2nd, Bank of America's latest data shows that institutional clients have been selling off US stocks for the fourth consecutive week, with fund inflows into the tech sector hitting a historical low; individual stocks saw $9.9 billion in outflows, the fourth largest outflow since 2008.

Contrary to the continued reduction in holdings by institutional clients, hedge funds have been net buyers during this period. Retail clients, in a departure from earlier trends, became net buyers for the first time in six weeks, indicating diverging investor behavior in the current market environment.

On the corporate front, Bank of America's data shows that corporate client buyback activity has slowed for the fifth consecutive week, dropping to the lowest level since February. The ongoing weakening of buyback activity is in line with the overall cautious sentiment of institutional clients reducing their holdings in tech and financial stocks.