BlockBeats news: On July 3, Bank of America’s latest weekly report showed that for the week ending July 1, U.S. equity funds experienced a weekly outflow of $17.2 billion, marking the largest net redemption since March 2026 and the second consecutive week of net outflows. Meanwhile, Bank of America’s Bullish/Bearish Indicator rose from 9.1 to 9.5, remaining in the “extremely bullish” range. Michael Hartnett, Chief Investment Strategist at Bank of America, stated that the “sell signal” triggered on May 20 has not yet been invalidated. According to Bank of America data, since 2002, this indicator has generated 17 “sell signals,” with global stock markets subsequently declining an average of 2% to 3% over the following two to three months, with a historical accuracy rate of approximately 60% and maximum drawdowns ranging from 15% to 20%.
In terms of fund flows, investment-grade bonds attracted $17.2 billion this week, marking the 13th consecutive week of net inflows; high-yield bonds saw $3.4 billion in inflows, the largest weekly inflow since May 2025. Technology funds attracted $14.3 billion this week, with year-to-date inflows on track to set a new historical record of $152 billion. Meanwhile, Japanese equity funds drew $1.9 billion this week, the largest weekly inflow in nearly seven weeks.
Amid outflows from U.S. equities, the semiconductor sector has come under significant pressure, with the Philadelphia Semiconductor Index declining 11% over the past two trading days. J.P. Morgan strategists noted that the extreme outperformance of U.S. semiconductor stocks relative to AI hyperscale cloud companies has created an unsustainable valuation gap, which they expect will eventually narrow. Commodities and gold continue to face pressure, with gold experiencing $3 billion in outflows this week—the seventh consecutive week of outflows. Cryptocurrencies saw $2 billion in outflows, marking the largest weekly outflow since November 2025.