U.S. stock market sees first outflow since March. And that may set the stage for a risk-off summer.

AI Summary

The U.S. stock market experienced its first net outflow of funds since March, signaling a possible shift in investor sentiment ahead of the midterm elections. Investors may be moving away from technology stocks towards cyclicals, housing, REITs, and smaller market caps in anticipation of changing political and economic conditions.

A trend reversal in fund-flow data may show that investors are switching their focus from tech stocks to sectors in line to benefit as midterm elections approach this fall: illiquid cyclicals, housing, REITs, and small and midcap stocks.