In the past week, U.S. financial markets experienced notable shifts, highlighted by a substantial influx of capital from retail investors. Financial stocks, represented by the Financial Select Sector SPDR Fund (XLF), recorded their largest weekly inflow in three years. Overall, U.S. stocks saw a weekly inflow of $8 billion, marking the highest level in two years. Retail traders were responsible for this surge, net buying over $8 billion in equities. Conversely, hedge funds exhibited a contrasting trend, with reports indicating they engaged in the most significant net selling of U.S. stocks since the summer of 2024. This selling trend was further emphasized by macro hedge funds, which have reduced their exposure to U.S. equities to the lowest levels since the market's low in October 2023. The pace of stock dumping by hedge funds has now surpassed even that seen during the 2022 bear market.