In May 2025, foreign investors withdrew $37 billion from U.S. stocks, marking the largest monthly exit in a year and contributing to a total net outflow of $31 billion for the year to date. This followed a $7 billion outflow in April and was driven by growing concerns over U.S. trade policy, fiscal policy, rising debt, and the risk of tariffs triggering a recession. Asian retail investors notably reduced their exposure, with Korean individual investors selling over $1 billion and Japanese retail investors offloading approximately $166 million in U.S. equities, the largest reduction since April 2023. Meanwhile, institutional investors have consistently sold U.S. stocks throughout 2025, with professional investors unloading $4.2 billion in the last week and averaging $2 billion in weekly sales over four weeks. Despite these outflows, retail investors have purchased a record $150 billion in U.S. equities during the first five months of 2025, although buying slowed to $23 billion in May after stronger activity earlier in the year. Hedge funds reversed a four-month selling streak in May, buying a record amount of global equities according to Goldman Sachs data. Overall, global investors are reallocating funds from U.S. equities to European and emerging market assets amid economic and policy uncertainties in the U.S.