Jan 17 Reuters U.S. equity funds saw a spike in outflows for the week ending Jan. 15, as the outlook for Federal Reserve rate cuts this year had dimmed while investors were cautious about the ongoing quarterly earnings season.

According to LSEG Lipper data, investors withdrew a sharp 8.23 billion from U.S. equity funds during the week on top of a net 5.01 billion worth of sales in the prior week.

U.S. shares rose after a lowerthanexpected core inflation reading and strong financial results from firms like JP Morgan and Goldman Sachs, but concerns linger that Presidentelect Donald Trump39;s potential tariffs on Mexico, Canada, and increased tariffs on China could drive inflation higher and impede longterm growth.

By segment, investors divested largecap, midcap, multicap and smallcap funds to the tune of 4.35 billion, 1.54 billion, 1.02 billion and 379 million, respectively.

Sectoral funds witnessed 428 million worth of outflows following a net 35 million of purchases a week ago. Still, the financial sector was in demand with about 752 million in net investments during the week.

U.S. general domestic taxable fixed income funds, shorttointermediate government and treasury funds, and loan participation funds witnessed a notable 2.33 billion, 2.15 billion and 1.42 billion worth of inflows, respectively.

In parallel, investors divested a net 60.07 billion worth of money market funds, ending a threeweeklong trend of net purchases.

Reporting by Gaurav Dogra and Patturaja…