Bank of America clients have been withdrawing money from U.S. equities at the fastest pace in 10 weeks, with $1.3 billion pulled out last week despite the S&P 500 reaching record highs and posting its best quarter since 2023. This selling trend has been broad-based, involving institutional investors, hedge funds, and retail investors. Institutional investors have sold U.S. stocks in nine of the last ten weeks, with outflows reaching $3.2 billion in single stocks and ETFs last week alone. Hedge funds have also contributed to the selling, recording their third consecutive week of outflows totaling $1 billion. Despite this, retail investors have continued to buy, with mom-and-pop investors purchasing a record $155.3 billion in U.S. equities during the first half of 2025, averaging about $1.3 billion daily, which is 22% more than the same period in 2024. This divergence highlights a market dynamic where professional money managers are reducing exposure while retail participation remains robust. The S&P 500 has outperformed broader risk sentiment indicators by over 2% cumulatively in the last 20 days, and stocks favored by retail traders have notably outperformed the index since April 8, 2025.