• Bank of America (BAC) clients sold a net $3.5 billion in US equities last week, following $15 billion in outflows the previous week, according to analysts Jill Carey Hall and Trey Brown.
  • Retail investors led the selling, with communication services posting its largest weekly outflow since tracking began in 2018 and industrials extending their losing streak to 13 consecutive weeks.
  • The data underscores a rotation out of concentrated equity positions, even as broader US equity funds continue to attract capital.

Record Outflows in Communication Services

Bank of America clients pulled a net $3.5 billion from US equities last week, capping a two-week stretch that saw $18.5 billion exit the market, according to a report from BofA analysts Jill Carey Hall and Trey Brown. The prior week recorded $15 billion in outflows, setting a brisk pace of de-risking among the bank's client base.

Retail investors were the primary drivers of the selling, the analysts noted. The communication services sector, which includes Meta Platforms (META) ($META), recorded its largest weekly outflow since tracking began in 2018, according to the report. Industrials also faced heavy selling, marking their 13th consecutive week of outflows—a streak that suggests sustained caution toward cyclical exposure.

The latest figures, updated through October 28, 2026, at 10:32 a.m. EDT, come as market participants await the Federal Reserve's decision later today. The central bank is widely expected to hold rates steady after September's increase, though persistent inflation and energy costs tied to Middle East tensions have kept the door open to further tightening.

A Rotation, Not an Exit

While the headline outflows appear alarming, they paint only part of the picture. BofA's separate global fund-flow analysis reported $6.7 billion entering US equity funds in the week to October 21—the third consecutive positive week—and $55.6 billion flowing into equity funds globally. The divergence suggests that some clients are rotating out of individual stocks and into ETFs or other vehicles rather than abandoning equities altogether.

"What we're seeing is a repositioning within equities, not a wholesale exit," said one person familiar with the bank's flow data, who spoke on condition of anonymity. "Retail clients have been selling single stocks while still purchasing ETFs, a pattern we've observed in prior cycles."

Indeed, a March 2025 BofA report noted a similar dynamic: clients remained net buyers of US equities because ETF inflows outweighed individual-stock selling. More recently, in December 2025, institutional buying neared record levels even as private clients had been net sellers for a month. Investor groups can move in opposite directions, and the latest data appear to reflect that.

The selling in communication services does not establish how much Meta itself was sold. A sector total cannot identify individual-company flows, and Meta's shares have been volatile following its October 21 earnings release, which showed strong advertising growth but negative free cash flow of $2.12 billion due to a $9.89 billion legal charge and $34.91 billion in capital expenditures.

Meta reported third-quarter revenue of $64.60 billion, up 26% year over year, but operating income fell 37% to $12.99 billion as costs surged. The company's advertising business remained robust, with impressions up 10% and average prices up 14%. Excluding the legal charge, operating income would have been $22.88 billion and diluted EPS $7.40, Meta said.

Industrials Streak Raises Questions

The 13-week selling streak in industrials is a separate warning about investor positioning. Without the original flow report's detailed attribution, it would be speculative to say it proves an imminent manufacturing downturn. But the persistence of outflows suggests that clients are increasingly wary of cyclical exposure as the economic outlook remains uncertain.

BofA economist Aditya Bhave has argued that worsening inflation makes a case for further tightening, a view that could weigh on industrials if rates stay higher for longer. The Fed's decision later today will be closely watched for signals on the path of monetary policy.

Meanwhile, market prices have not moved uniformly lower. On October 27, the S&P 500 gained 0.60% and the Nasdaq Composite rose 1.18%, despite the recent selling concerns. Client flows are a positioning indicator, not a direct forecast of index performance.

Broader fund flows also showed strong emerging-market inflows, including China and Korea, while European equities experienced outflows. That supports a picture of uneven regional allocation rather than universal risk aversion.

A BofA spokesperson declined to comment on the specific figures beyond the published report. The analysts were not available for additional comment.

Correction: October 28, 2026 — An earlier version of this article misstated the week in which the $6.7 billion inflow to US equity funds occurred. It was the week to October 21, not the week to October 14.