According to LSEG's data, investors sold $22.43 billion worth of US stock funds in the week ending September 25, the largest single-week net sales since December 2022, and the fifth consecutive week of investors reducing their holdings of US stock funds. This indicates that investors' concerns about the US economic situation persist and they remain cautious ahead of the US presidential election.

The recent weak US consumer confidence index has heightened investors' concerns about the health of the US job market, making them more worried that the Federal Reserve's rare 50 basis point interest rate cut cycle earlier was in response to a significant economic slowdown.

By category, US large-cap fund experienced a $15.23 billion outflow, the largest single-week net sales since December 2022. In addition, US small-cap fund and middle-cap fund saw outflows of $2.34 billion and $9.98 billion, respectively.

By industry, investors withdrew $0.539 billion from consumer staples stocks, reversing the trend of net buying for three consecutive weeks; real estate, industrial, and financial sector stocks each experienced outflows of approximately $0.4 billion.

Meanwhile, US bond funds attracted $6 billion in net inflows in the week ending September 25, marking the seventeenth consecutive week of net inflows. Among them, US short to intermediate-term government bond funds attracted around $3.13 billion in inflows, the highest level in four weeks.

In addition, US taxable domestic funds and short to intermediate-term investment grade funds also saw significant net buying, with sizes of $2.21 billion and $1.17 billion, respectively.

It is worth noting that US investors also made net purchases of $112.57 billion in money market funds, the largest single-week net purchases since December 2020.

Editor/Rocky