In the week leading up to October 5, U.S. stock funds saw a sharp increase in withdrawals as news of strong labour market demand and ongoing core
inflation fueled concerns that the Federal Reserve would continue raising interest rates aggressively.
According to Refinitiv Lipper data, investors sold U.S. stock funds for a net $7.09 billion after selling them for a net $4.63 billion the week before.
Personal consumption expenditures (PCE) price index data for the reporting week indicated an increase of 0.3% in August following a decrease of 0.1% in July.
The news that employment increased significantly in September increased hopes for more increases.
Additionally, cautious investors were expecting the eagerly anticipated monthly nonfarm payrolls report that was coming on Friday.
U.S. stock funds saw a sharp increase in withdrawals as news of strong labour market demand and ongoing core inflation fueled concerns that the Federal Reserve would continue to raise interest rates aggressively.