U.S. Equity Funds See $8.5B Outflows This Week, BofA Signals 'Risk-Off Summer' Ahead

According to Bank of America Chief Equity Strategist Michael Hartnett, U.S. equity funds experienced $8.5 billion in outflows in the week ending Wednesday, the largest withdrawal since Iran's geopolitical conflict in March. Hartnett warned in BofA's weekly Flow Show report that this shift signals a potential "risk-off summer," particularly if the Treasury yield curve inverts again while the Magnificent Seven technology stocks face steeper declines. The Magnificent Seven ETF has already fallen 14% from its May peak. Hartnett highlighted two key technical levels to monitor: if the ETF breaks below the $60 psychological threshold, it would signal a major shift in investor sentiment.
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