U.S. money market funds recorded a massive $66.24 billion in net inflows during the week ending June 4.
This marked the largest weekly total since December 4, 2024, according to LSEG Lipper data.
Investor caution surrounding rising steel tariffs and ongoing trade tensions with China pushed many toward safer investment options.
Equity Funds See Significant Outflows
While money market funds attracted strong inflows, equity funds were hit hard.
There was a net outflow of $7.42 billion from U.S. equity funds during the same week.
This marked a steep increase from the $5.39 billion in outflows recorded the week before.
The small-cap segment saw $2.99 billion in outflows—its worst showing since April 30.
Multi-cap, mid-cap, and large-cap funds experienced outflows of $2.13 billion, $1.05 billion, and $962 million, respectively.
Mixed Results in Sectoral Funds
Sector-specific funds painted a mixed picture.
While investors poured $1.15 billion into tech and $309 million into consumer staples, they withdrew $1.16 billion from financials.
This resulted in a modest net inflow of $136 million into sectoral funds overall.
Bond Fund Inflows Slow Down
Bond funds continued to attract capital but at a reduced pace.
Net inflows into U.S. bond funds totaled $4.8 billion, the lowest in four weeks.
Despite the slowdown, certain bond categories saw renewed interest.
Short-to-intermediate investment-grade bond funds drew $3.98 billion in inflows, the highest since November 2024.
Inflation-protected securities brought in $634 million, while general taxable fixed-income funds added $505 million.
Market Mood Turns Defensive
The latest data reflects a broader shift in investor sentiment.
Concerns about trade policy and key economic indicators, including a critical employment report, prompted many to seek low-risk investments.
Money market funds, known for their safety and liquidity, became a preferred destination during the uncertain week.