Bank of America data: U.S. stocks face largest sell-off, tech sector outflows hit record.

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The US stock market experienced severe turbulence last week, with investor sentiment clearly shifting. Bank of America's latest fund flow data shows that net sales of US stocks reached a record high last week, while the S&P 500 logged its largest weekly decline in over a year during the same period.

According to data from Bank of America strategist Jill Carey Hall, clients sold a net $14.4 billion in US stocks last week (after deducting ETF net inflows), with single-stock outflows reaching $14.2 billion, a new historical high.

Institutional investors led this round of selling, recording the largest outflows since mid-March 2025; hedge funds and private clients also continued to reduce positions, with the scale of selling by private clients being the largest since November 2024.

Despite large net sales of individual stocks, stock ETFs saw net inflows for the eleventh consecutive week, with a modest $300 million flowing in last week, indicating that some investors still choose to maintain market exposure via passive instruments.

According to CCTV News, on the 10th local time, US President Trump told the media at the White House that the US would launch an attack on Iran and that it would be “very fierce.” This statement heightened geopolitical risks, further impacting market sentiment.

Technology Stocks Experience Largest Outflows Ever

The selling pressure was concentrated in large-cap stocks, especially in the technology sector. Bank of America data shows that outflows from technology stocks were the highest since the bank established its database in 2008, making it the most prominent feature of this market adjustment.

Amid this large-scale sell-off, clients were net sellers in 8 of the 11 S&P sectors. The communication services sector also saw outflows, but on a relatively limited scale.

Meanwhile, the industrials, real estate, and utilities sectors managed to attract inflows against the trend, with real estate recording net inflows for six consecutive weeks, reflecting the relative resilience of defensive assets.

Rotation to Small Cap and Value Styles

This wave of selling was not a complete exit from the stock market, but rather exhibited clear style rotation. Data shows that while clients heavily reduced large-cap holdings, they shifted toward small- and mid-cap stocks, reflecting a tendency to avoid valuation risks.

In terms of ETF fund flows, investors favored value and blended strategies, while reducing growth exposure.

By sector, healthcare ETFs led inflows, while technology and financial ETFs saw the largest outflows, highly consistent with the selling direction in individual stocks.

Corporate Buybacks Slow, but Remain Above Historical Averages

In terms of corporate buybacks, the scale of buybacks shrank for the second week in a row last week, but the four-week rolling average rose to the highest level since the end of March.

From a cumulative perspective since the beginning of the year, on an annualized basis, corporate buybacks this year are slightly lower than the same period in 2025 and short of the record scale in 2024, but still significantly higher than the historical norm from 2016 to 2023.

The S&P 500 fell 2.6% last week, its biggest weekly drop since May 2025. Against this backdrop, the marginal slowdown in buybacks means the market has lost an important technical support, which is worth investors' continued attention.

Risk Warning and DisclaimerThere are risks in the market, and investment requires caution. This article does not constitute personal investment advice, nor does it take into account individual users' specific investment objectives, financial situations, or needs. Users should consider whether any opinions, views, or conclusions in this article are suitable for their particular circumstances. Investing accordingly is at your own risk. ```