

Market Analysis
Despite a 1.4% increase in the S&P 500, clients of Bank of America Securities were net sellers of U.S. equities last week, offloading $4.6 billion after two weeks of buying.
According to a report released on Tuesday, clients predominantly sold individual stocks while purchasing equity exchange-traded funds (ETFs). Large and mid-cap stocks saw outflows, whereas small caps attracted inflows for the fourth consecutive week.
Institutional and hedge fund clients were the main sellers, reversing their previous buying trend, while private clients continued to be net sellers for the third week in a row.
Corporate buybacks also slowed, dipping below seasonal levels as a percentage of the S&P 500 market cap for the first time in 24 weeks. However, buybacks year-to-date remain on track to set a record for the year, according to BofA.
Sales were noted across seven sectors, with Technology experiencing its first outflow in three weeks and Consumer Discretionary seeing its first outflow in six weeks. Conversely, Communication Services and Utilities saw the largest inflows, with Communication Services continuing its longest buying streak at 21 weeks.
Energy stocks have faced ongoing selling for five weeks, and Industrials experienced outflows in six of the past seven weeks.
ETF inflows continued for the third straight week across all investment styles and market sizes, except mid-caps. Technology ETFs saw the highest inflows, while Energy ETFs experienced the largest outflows.
U.S. stocks ended the week on a positive note, buoyed by Federal Reserve Chair Jerome Powell’s comments hinting at potential interest rate cuts.
Paraphrasing text from "Investing" all rights reserved by the original author.