BofA clients continue selling the S&P 500 rally

Bank of America client flow data show investors are net sellers even as the S&P 500 has ticked higher, highlighting reluctance to chase the market’s recovery. Single-stock outflows hit a sixth straight week at $3.9bn, only partially offset by $1.4bn of equity ETF inflows (the fifth consecutive week of ETF buying). Institutional clients drove most of the selling (outflows in five of six weeks), while private clients and hedge funds returned to buying. Large caps have seen combined stock+ETF outflows for seven straight weeks. Sector flows were broadly negative, led by Health Care (worst four‑week rolling reads since Dec 2024) and extended Energy stock selling, although Energy ETFs attracted inflows. Buyback activity has slowed and is below the post‑GFC average. Overall, the flows signal downside risk and limited conviction behind the S&P 500’s gains, creating vulnerability into upcoming earnings and policy events.