Bank of America customers have been net selling US stocks for the second consecutive week, with the scale being the largest since November 2020

Bank of America's clients have been net sellers of US stocks for the second consecutive week, setting a record high since the end of 2020 and the second largest net selling scale since 2008, reflecting increased market uncertainty about the economic outlook.

On Wednesday, September 4th, Eastern Time, quantitative strategist Jill Carey Hall and her team pointed out in a report that as of the week ending on August 30th, various clients including institutional investors, hedge funds, and retail investors all reduced their holdings of US stocks, resulting in a net selling amount of up to $8 billion.

Clients not only sold individual stocks but also sold exchange-traded funds (ETFs), which saw outflows for the first time since June. In terms of scale, selling was observed across large-cap, mid-cap, and small-cap stocks.

At the industry level, the outflow of funds from tech stocks was most significant, especially after NVIDIA's earnings report, marking the largest fund outflow since May. Energy stocks have been experiencing continuous selling over the past six weeks, marking the longest selling period in recent times. Industrial stocks saw fund outflows for seven out of the past eight weeks. The only sector to see fund inflows is the communication services industry, with a buying cycle lasting 22 weeks, the longest in the S&P 500 index.

Furthermore, corporate clients' buyback activities have also slowed down for the second consecutive week