Global Equity Fund Inflows Decline Amid Tech Selloff and Powell Speech Caution

Global equity fund inflows plummeted in the week ending August 20 as investors turned cautious amid a tech stock selloff and anticipation of Federal Reserve Chair Jerome Powell's Jackson Hole speech. Net inflows dropped to $2.27 billion from $19.29 billion the prior week, with U.S. equity funds seeing outflows of $2.4 billion—a sharp reversal from the previous week's $8.76 billion inflow.

Asian and European equity funds also weakened, with inflows easing to $70 million and $4.2 billion, respectively. Sectoral funds suffered net withdrawals of $1.8 billion, led by tech ($613 million outflow) and financials ($1.58 billion outflow). Meanwhile, global bond funds extended their 17-week inflow streak, attracting over $18 billion, with high-yield bonds posting their largest inflow in eight weeks.