BofA: Record Net Selling of U.S. Stocks Last Week; Tech Outflows Highest Since 2008
Miles Bennett
BofA data shows clients net-sold $14.4 billion of US equities last week — a record — with tech outflows the largest since the bank began tracking in 2008; the S&P 500 posted its steepest weekly drop in over a year.
$14.4 billion in net selling — how extreme is that?
Clients net-sold $14.4 billion of US equities last week (after netting out ETF inflows), with single-stock outflows reaching $14.2 billion. This means → the de-risking is larger than any prior episode on record, including the 2020 pandemic panic.
Institutional investors led the selling, posting the biggest outflow since mid-March 2025. Hedge funds and private clients reduced exposure in tandem; private-client selling was the heaviest since November 2024.
In plain terms = it wasn't one type of investor running — institutions, hedge funds, and retail all headed for the exit at the same time. That kind of consensus liquidation is historically rare.
Why was tech the epicentre?
Tech-sector outflows were the largest since BofA began its database in 2008, making tech the defining feature of this drawdown.
Clients net-sold 8 of 11 S&P sectors; communication services also saw outflows, though smaller in scale.
This means → the market wasn't just dumping tech — it was systematically cutting US equity exposure. But tech bore the deepest cuts because it had the biggest prior gains and the richest valuations.
Where did the money go — rotation or full retreat?
While slashing large-cap holdings, clients rotated into small-caps and mid-caps, signalling a move away from valuation risk.
On the ETF side, investors favoured value and blend strategies while trimming growth exposure.
In plain terms = this isn't "I don't want stocks" — it's "I don't want expensive stocks." Capital shifted from large-cap growth to small-cap value: a style rotation, not a wholesale exit.
ETFs have seen 11 straight weeks of inflows — who is still buying?
Despite the massive single-stock sell-off, equity ETFs extended their 11-week inflow streak, adding a modest $300 million last week.
Healthcare ETFs led inflows; tech and financials ETFs saw the heaviest redemptions, mirroring the single-stock pattern.
This reflects a split strategy: some investors are actively dumping individual names while keeping market exposure through passive vehicles — selling stocks, keeping the index. It's a "reduce risk without leaving the table" play.
What does shrinking corporate buyback activity signal?
Corporate buybacks contracted for a second straight week, though the four-week rolling average rose to its highest since late March.
On an annualised basis, 2025 buybacks trail the same period last year and fall short of the 2024 record, but remain well above the 2016–2023 historical norm.
This means → the "invisible buyer" — corporate repurchases — is losing momentum at the margin. In a falling market, buybacks normally cushion the decline. That cushion is thinning.
What comes next?
The S&P 500 fell 2.6% last week, its steepest weekly decline since May 2025.
According to CCTV News, US President Trump said on the 10th that he would launch a "very ferocious" strike against Iran, adding geopolitical risk to an already fragile sentiment backdrop.
Put simply = the core question is one: after tech positions have been flushed, can the sector attract fresh buying? If yes, this sell-off is the growing pain of a style rotation. If no, the drawdown likely deepens.
Content is for reference only, not financial advice.