The bank, which tracks its clients trading flow, said hedge funds net sold roughly $2 billion in U.S. shares. Sales occurred across most sectors, except for industrial, BofA showed, and were mainly concentrated on large-cap companies.

Last week, the Nasdaq fell 1.34%, the S&P 500 was down 0.42% and the Dow Jones Industrial Average declined 0.11%, as inflation reports came in hotter-than-expected and eroded hopes for imminent interest rate cuts by the Federal Reserve.

Hedge funds have net sold $3.8 billion in shares this year, the bank said, leading outflows. Institutional investors have also been sellers, as well as retail. Conversely, companies are the sole net buyers, as stock buybacks are at historical high levels, totaling $17.9 billion.

(Reporting by Carolina Mandl; Editing by Chizu Nomiyama)

By Carolina Mandl