© Reuters. FILE PHOTO: Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., January 10, 2022. REUTERS/Brendan McDermid/File Photo
(Reuters) – U.S. equity funds faced huge outflows in the week ended May 10, on caution over the U.S. debt ceiling and concerns over disappointing earnings forecasts from some top companies.
According to Refinitiv Lipper, U.S. equity funds faced outflows worth $5.7 billion, which was their seventh consecutive week of outflows.
Investors were looking for an update on plans for raising the U.S. debt ceiling during the week, and worries of a potential government default as early as June 1 loom over Washington, if Congress does not act to resolve the deadlock.
A meeting between U.S. President Joe Biden and top lawmakers that had been scheduled for Friday has been postponed to early next week, with the IMF warning that a U.S. default would have “serious repercussions” for the U.S. economy.
Apple Inc (NASDAQ:) supplier Skyworks (NASDAQ:) and payments company Paypal Holdings (NASDAQ:) Inc cut their earnings outlooks during the week, adding to caution among investors.
U.S. bond market funds received a small inflow of $532 million, while money market funds obtained $10.4 billion.
U.S. high-yield bond funds and inflation-linked funds faced outflows worth $1.2 billion and $291 million, respectively. On the other hand, U.S. government bond funds received over $2 billion during the week.
This story originally appeared on Investing