Bank of America says US stock funds recorded the largest outflow in over three months.

Bank of America said that investors are withdrawing from the US stock market at the fastest pace since March. A team led by Michael Hartnett wrote in a report that, according to data from EPFR Global, US stock funds saw outflows of $17.2 billion in the week ending July 1. At the same time, investors are turning their attention to some international stocks, with around $1.9 billion flowing into the Japanese stock market, marking the largest inflow in seven weeks. Sentiment towards the US stock market is changing, as it had attracted strong inflows at the beginning of the year. Last week, US stock funds recorded their first net outflow since March. This week, doubts surrounding the high valuations of artificial intelligence continue to impact chip stocks, with the Philadelphia Semiconductor Index falling by a cumulative 11% in the past two trading days.