Investors pull money from US equity funds ahead of earnings reports from AI hyperscalers

Oct 30 (Reuters) US equity funds recorded their first weekly outflows in three weeks in the week ended October 28, as investors ​grew cautious ahead of earnings from major ‌AI hyperscalers amid concerns about the rising cost of their AI build-outs. Investors withdrew a net $6.65 billion from US equity funds during the week, marking the first weekly outflow since October ‌7, ​according to LSEG Lipper data. Microsoft ⁠reported a strong cash-flow ⁠beat earlier this week and forecast robust cloud growth, offering fresh evidence that its substantial AI investments were paying off. However, Alphabet and Amazon ​disappointed investors with their results. US large-cap funds recorded $3.8 billion worth of outflows, partly reversing inflows of $8.72 ⁠billion the prior week. ⁠Investors also shed mid-cap funds of $2.11 billion, ​small-cap funds of $832 million and multi-cap funds of $303 million. Sectoral ​funds recorded net weekly inflows of $3.52 billion — the ‌largest in three weeks — driven