Investors sold U.S. equity funds worth a net $7.09 billion after disposing of a net $4.63 billion in the previous week, data from Refinitiv Lipper showed.
During the reported week, personal consumption expenditures (PCE) price index data showed a rise of 0.3% in August, after dipping 0.1% in July. A report showing that employment surged in September also raised expectations of more hikes.]
Investors were also cautiously awaiting a closely watched monthly nonfarm payrolls report due on Friday.
U.S. growth funds suffered $8.62 billion worth of net selling, the biggest weekly outflow since Jan 26, while value funds recorded withdrawals worth $1.3 billion.
Among U.S. sector funds, investors exited health care and financials funds worth $733 million and $224 million respectively but purchased consumer discretionary funds of $331 million.
Meanwhile, bond fund outflows eased to a three-week low of $908 million, the data showed.
Investors purchased high yield funds of $2.62 billion after six weeks of selling in a row, although short/intermediate investment-grade and loan participation funds recorded disposals of $3.13 billion and $1.07 billion respectively.
U.S. government bond funds remained in demand for a sixth straight week, securing a net $4.88 billion.
Meanwhile, investors drew $16.57 billion out of money market funds after two straight weeks of net buying.
(Reporting by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru)
