Institutional Investors Lead Significant U.S. Stock Sell-Off

On March 27, The Kobeissi Letter reported a substantial sell-off by institutional investors in U.S. stocks, marking the largest weekly sale in five weeks. According to BlockBeats, institutional investors sold a net $11 billion in stocks last week, following three weeks of net buying totaling $12.6 billion. In contrast, hedge funds purchased a net $1.8 billion in U.S. stocks, reversing a four-week trend of selling. Retail investors also contributed to the sell-off, with a net sale of $80 million, marking the third net sale in the past ten weeks. Overall, U.S. stocks experienced a net outflow of $9.3 billion last week, significantly higher than the $1 billion outflow from the previous week. This brings the total outflow over the past 16 weeks to $25.5 billion. Notably, individual stocks saw an outflow of $8.3 billion, the fourth largest weekly outflow since 2008, while ETFs experienced a $1.1 billion outflow, the highest in six months. Institutional investors are increasingly adopting a cautious stance amid these market dynamics.