US stocks witnessed the largest wave of outflows since last March, with investor risk appetite declining, as investment funds withdrew about $17.2 billion from US stock markets in the week ending July 1, according to Bank of America data.

The data showed a shift in investor preferences towards alternative markets and assets, as Japanese stocks attracted inflows of $1.9 billion, recording their largest weekly inflow in seven weeks, indicating growing interest in international markets.

At the same time, global equity funds recorded net outflows of $13.9 billion, while demand for fixed-income instruments rose, with investment-grade bond funds attracting strong inflows of $17.2 billion, while high-yield bond funds recorded their largest weekly inflows in more than a year, totaling $3.4 billion.

These moves reflect an increasing tendency among investors to rebalance their portfolios towards lower-risk assets, amid continued anticipation regarding the course of the global economy and monetary policies in the coming period.