Third-largest since 2008! US single stocks see $11 billion in weekly outflows, with tech stocks hit hardest

Last week, institutional investors heavily sold off individual stocks, with a combined net outflow of $11 billion from US equities. The exodus was concentrated in the technology sector, marking the third-largest weekly outflow from single stocks in Bank of America's recorded history. Bank of America strategist Jill Carey Hall wrote in a recent report that selling pressure came primarily from the tech sector, which recorded its fourth-largest weekly outflow since 2008; meanwhile, the four-week rolling average fund flow for tech stocks turned negative for the first time since July. Nine of the 11 sectors experienced outflows, with communication services and industrials also seeing significant selling the latter logging its tenth consecutive week of net outflows while materials and real estate were the only two sectors to post net inflows. The rush out of individual stocks came as institutions reduced their single-stock holdings for a second consecutive week; hedge funds and retail investors were contrarian net buyers, marking the first return of retail money to the stock market since late July. Bank of America noted that despite the heavy selling in individual stocks, demand for overall market exposure remained robust, with clients injecting funds into equity ETFs for a 15th straight week, totaling $3.2 billion. Flows favored value and blended funds over growth funds, while money rotated out of the tech sector and into healthcare ETFs.