According to data from LSEG, US equity funds recorded $1.42 billion in outflows for the week ending February 11.

This marks the first weekly outflow since January 21.

Analysts cite two primary concerns:

📉 Rate-cut uncertainty Investors are reassessing expectations around Federal Reserve easing, creating volatility in yields and equity valuations.

🤖 AI-related worries After a powerful AI-driven rally, questions are emerging around:

• stretched valuations
• earnings sustainability
• concentration risk in mega-cap tech

Even though $1.42B is not a massive number relative to total AUM, the shift is notable because:

• It breaks a multi-week inflow streak
• It coincides with Nasdaq underperformance
• It reflects cooling risk appetite

If outflows persist, this could indicate:

📊 rotation rather than broad liquidation 📉 early signs of distribution in crowded trades ⚠️ increased volatility ahead

For now, the key question is whether this is a one-week pause — or the beginning of a broader repositioning cycle in US equities.