By David Randall
(Reuters) - Investors pulled $994 million out of U.S.-based stock funds in the week that ended Wednesday, according to Lipper data released on Thursday, adding another layer of selling during what is shaping up to be a rocky September in the stock market.
The benchmark S&P 500 is down slightly more than 4% since the beginning of the month, pausing a rally that has pushed the index up approximately 50% since its March lows. Much of the decline has come in giant technology stocks that led the stock market to record highs despite the coronavirus pandemic.
Investors instead continued to gravitate toward taxable bond funds, which attracted $7.0 billion during the 23rd straight weekly inflow. Bonds dipped Thursday, one day after the Federal Reserve said it expects to keep interest rates near zero until at least 2023 to allow inflation to rise in the economy.
Money mark funds shed $50.5 billion during the week, the 10th largest liquidation on record, while emerging market equity funds lost approximately $525 million.