Investors pulled money from both stock and bond funds in the past week, and shifted money within U.S. equities to health care and out of tech and financials.
According to Bank of America Merrill Lynch, investors pulled $3.6 billion out of equity mutual funds and ETFs, with $2.6 billion out of U.S. stocks. But as investors took a defensive posture on stocks, they also dumped government debt, with net outflows of $1.5 billion from Treasurys and government bonds, the biggest since December 2016. Overall, bonds lost a total of $2.3 billion.
Stock-market investors shouldn’t get too used to the dollar rally, Goldman Sachs analysts warned Friday.
They expect the U.S. dollar to weaken by 7% over the next 12 months and urged investors to factor that outlook into their equity positions.
Stock prices in Chinese education companies listed in Hong Kong have come under pressure after the central government issued a draft proposal that would tighten regulations.
Shares in a number of the companies plunged on Monday, with some closing nearly 40 percent lower, though they began clawing back some of the losses in Tuesday trading.