Investors sold SMID caps despite dovish Powell: BofA Investing.com -- Investors pulled money from small- and mid-cap (SMID) equities last week, even as Federal Reserve Chair Jerome Powell struck a dovish tone at Jackson Hole, Bank of America said in its latest client flow report. Total equity outflows reached $1.6 billion in single stocks, marking a second straight week of selling. Equity exchange-traded funds (ETFs), however, drew modest inflows of $400 million. “Despite Powell’s dovish speech at Jackson Hole, only large caps saw inflows,” strategist Jill Carey Hall said in a Tuesday note. Hedge funds led the selling, offloading equities for a second consecutive week. Private clients also turned sellers for the first time in two months, with single-stock sales—the biggest so far this year—outweighing ETF purchases. Institutional clients stood out as net buyers for a fourth straight week. Corporate buybacks picked up pace but remained below seasonal norms for the eighth week in a row. BofA said this comes after an extended period near record highs, with activity now showing signs of deceleration. Selling pressure was broad-based, spanning nine of eleven sectors. Technology, consumer staples, and financials recorded the heaviest outflows. Communication services was the lone standout with the largest inflows, followed by industrials. Real estate continued its streak of redemptions, notching a twelfth straight week of outflows. ETF flows showed a more positive picture, with clients favoring value over growth for a fourth consecutive week. Inflows were concentrated in consumer discretionary, real estate, and materials ETFs, while health care and technology ETFs posted outflows. 3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads. “We see the Fed, macro and flows as positive catalysts for Value,” BofA wrote. The S&P 500 added 0.3% last week, closing at 6,466.91, after coming within three points of its record during one session high. This week, the index remained flat through Tuesday’s close. Successful investors know to check multiple angles before making their move. InvestingPro's three powerful features work together to give you that edge: ProPicks AI runs 80+ stock-picking strategies, including Tech Titans, which doubled the S&P 500's performance in just 18 months! Fair Value combines 17 proven valuation models to help you spot overpriced stocks and undervalued gems. And WarrenAI delivers instant insights on any stock. Ask questions, get vetted answers backed by real-time data (unlike ChatGPT). Our subscribers use all three to identify stocks before double-digit gains and avoid costly mistakes. But with 50% during our Summer Sale, even if you only use one of these features the value pays for itself. Sale ends soon—don't wait until prices go back up.

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