Investors pulled $32.27 billion from U.S. equity funds as oil prices spiked to $104.46, stoking fears of persistent inflation and potential Federal Reserve interest rate hikes.
WTI crude surged to a four-month high above $104, stoking inflation fears and causing equity fund outflows.
U.S. equity funds faced $32.27 billion in net outflows for the week ending September 9, the largest sell-off since late 2025. The surge in WTI crude to a four-month high of $104.46 fueled inflation concerns, prompting investors to rotate into bond funds while large-cap equities suffered record withdrawals of $40.44 billion.
The selling pressure was primarily driven by a sharp rise in oil prices, which hit a four-month high of $104.46, heightening fears of persistent inflation and potential interest rate hikes by the Federal Reserve.