U.S. Equity Funds See $8.5 Billion Outflows This Week, BofA Warns of 'Risk-Off Summer'

According to Bank of America's chief equity strategist Michael Hartnett, U.S. equity funds experienced $8.5 billion in outflows this week ending Wednesday—the largest withdrawal since Iran's geopolitical tensions erupted in March. In his weekly Flow Show report released Friday, Hartnett warned that a "risk-off summer" may be approaching, particularly if yield curve inversion resumes and tech stock declines intensify.

Hartnett highlighted that the Magnificent Seven ETF has fallen 14% from its May peak and warned that a breakdown below the psychologically significant $60 support level would signal a major shift in market sentiment.