US equity funds see first weekly outflow in six weeks

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(Reuters) -U.S. equity funds witnessed their first weekly outflow in six weeks in the ​week through November 26, as concerns over lofty tech ‌valuations prompted investors to take profits and overshadowed optimism about a possible Federal Reserve ‌rate cut next month.

They divested a net $4.56 billion worth of U.S. equity funds in their first weekly net sales since October 15, LSEG Lipper data showed.

The S&P 500 ⁠has risen more than ‌3% so far this week on expectations of a Federal Reserve rate cut next month. But ‍investors remain cautious as November has been marked by heightened volatility, driven by concerns over stretched tech valuations and the economic impact of a record ​43-day U.S. government shutdown.

U.S. large-‌cap funds saw a net $144 million weekly outflow following five successive weeks of inflows. Investors also ditched mid-cap and small-cap funds worth a total of $1.69 billion and $885 million, respectively.

U.S. bond funds remained ⁠popular for an eighth straight week ​as these funds drew approximately $8.6 ​billion in weekly inflows.

Short-to-intermediate government and treasury funds secured $4.05 billion, the largest amount for ‍a week since ⁠September 24. General domestic taxable fixed income funds also had a net $1.59 billion weekly inflow.

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U.S. money ⁠market funds, meanwhile, received $25.28 billion worth of inflows after two ‌successive weeks of net sales.

(Reporting by Gaurav ‌Dogra; editing by Philippa Fletcher)