Investors pull money from US equity funds ahead of earnings reports from AI hyperscalers

What happened

US equity funds had their first weekly outflows in three weeks in the week ended October 28, as investors grew cautious before earnings from major AI hyperscalers. Investors withdrew a net $6.65 billion from US equity funds, according to LSEG Lipper data.

Confirmed

Global impact / market context

The withdrawal shows investors trimming stock exposure before results from companies spending heavily on AI build-outs. Technology sector funds still drew $4.54 billion, so selling was selective rather than a broad exit from technology.

Analyst inference

Large-cap funds lost $3.8 billion, partly reversing prior inflows of $8.72 billion, while bond funds drew $2.04 billion. The pattern suggests some money moved toward bonds as investors weighed the rising cost of AI spending against company results.

Analyst inference

What to watch

1. Microsoft reported a strong cash-flow beat and forecast robust cloud growth, while Alphabet and Amazon disappointed investors with their results. Confirmed
2. Watch whether the $6.65 billion equity outflow continues in coming weeks or reverses once earnings from AI hyperscalers are fully reported. Proposed
3. Track technology fund inflows of $4.54 billion against bond fund purchases of $2.04 billion to see whether investors keep favoring bonds over stocks. Analyst inference

Evidence

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