Bank of America’s clients recorded record sales of US stocks in the week ending 19 June, despite a 0.9% increase in the S&P 500 index. Outflows from individual securities amounted to $11.2 billion (second highest in history), and from equity ETFs - $3.3 billion (maximum since January 2023). The sale was spearheaded by institutional investors, who for a third week in a row are raising funds at levels unprecedented relative to market capitalization of the S&P 500.

Nine of the eleven market sectors were affected by sales, with health care and industry experiencing a historic peak. Amid the massive flight of institutions and retail investors selling assets for a fifth week, hedge funds have demonstrated exactly the opposite tactics, capturing record purchases. Capital inflows have been attracted only by the materials and communications services sectors, as well as small-capitalization and broad-market ETFs.

Additional market pressure is stemming from the slowdown in corporate buybacks, which have been falling to lows for a fourth consecutive week since February. The current pace of buybacks is lower than its record levels in 2024 and 2025, underscoring the general caution of large investors amid high market valuations and macroeconomic uncertainty.

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The material is prepared solely for informational purposes and does not constitute a financial advice or recommendation.