Global investors pulled out $5.3 billion from equity funds in the week ending July 16, marking the first net sales since late June, amid concerns over U.S. tariffs and rising inflation.

While U.S. equity funds saw a sharp sell-off of $11.75 billion after two weeks of net purchases, European and Asian equity funds experienced net inflows of $4.66 billion and $718 million, respectively.

Emerging market equities and bonds faced losses, with equities down $208 million and bonds seeing $1.12 billion in net sales, ending an 11-week buying trend.

Despite the overall equity sell-off, gold and precious metal funds continued their streak of popularity, adding nearly $741 million in net investments for the eighth consecutive week.

A recent U.S. inflation report showed consumer prices rose sharply in June, influenced by tariffs, which could impact Federal Reserve decisions through September.

Sector trends revealed outflows from healthcare and technology, totaling $1.91 billion and $578 million respectively, while industrial and financial sectors attracted inflows of $1.11 billion and $791 million.

Meanwhile, global bond funds maintained strong demand, with net investments of about $12.85 billion over a 13-week period, especially in euro-denominated, short-term, high-yield, and government bonds.

Money market funds experienced a significant outflow of $21.3 billion, their first weekly net sales in three weeks, reflecting cautious investor sentiment.