Investors retreated from US equities at a historic velocity last week. Bank of America clients offloaded $14.2 billion in single stocks during the period ending June 5, marking the most aggressive selling event since the bank began tracking flow data.
The exodus was synchronized across institutional investors, private clients, and broker-dealers. Technology stocks absorbed the heaviest selling pressure, recording outflows unprecedented since sector-level tracking began in 2008. The mass liquidation drove the S&P 500 to a weekly loss of 2.6%.
While clients fled individual securities, equity exchange-traded funds attracted a net $0.3 billion, extending an 11-week buying streak. The divergence was stark, with capital rotating toward small- and mid-cap names. ETF flows favored value and blend strategies, while growth-oriented technology ETFs experienced significant redemptions.
Corporate buybacks continued to decelerate for a second consecutive week. The simultaneous slowdown in repurchase activity alongside record institutional selling removes a crucial layer of demand. The pivot toward smaller capitalizations suggests investors are seeking value away from the high valuations of mega-cap tech.