<ul data-eligibleForWebStory="true"><li>US stock funds recorded the largest outflows in almost three months, with $9.8 billion being redeemed in the week through Wednesday, as per Bank of America Corp's data.</li><li>Even European funds experienced their first outflows in nine weeks totaling $600 million.</li><li>The equity market rally has slowed down this month amidst uncertain global trade conditions.</li><li>Concerns about stagflation, potential rate cuts from the Federal Reserve, and tensions in the Middle East, with Israel targeting Iranian facilities, have impacted market sentiment.</li><li>S&P 500 futures dropped 1.2%, while the Stoxx 600 slipped 0.8% in response to the events.</li><li>Bank of America strategist Michael Hartnett highlighted signs of economic resilience but emphasized the need for broad market participation in further US equity gains for sustainability.</li><li>Hartnett cautioned that a stalled rally in European stocks and Japanese banks could signal a 'global equity bull trap' in the third quarter.</li><li>He recommended international equities over US counterparts this year.</li></ul>

US Equity Funds Hit By Biggest Outflows In 11 Weeks, BofA Says

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