Investor flight out of stocks continuesJuly 11, 2012: 4:48 PM ET
Investors continued to flee the stock market last week, as they digested a deal by eurozone political leaders to stabilize credit markets and strengthen the region's banking system, and received further evidence of a U.S. economic slowdown.
U.S. stock mutual funds lost $3.1 billion during the week ended July 3, according to the Investment Company Institute. Investors have now withdrawn money from the stock market for 19 of the past 20 weeks.
While investors initially cheered the "breakthrough" deal struck by European leaders aimed at easing the recapitalization of banks, they soon resumed caution as many of the details have yet to be finalized, and implementing the plans could prove politically difficult.
Investors were also spooked after a report showed that U.S. manufacturing slowed sharply in June to a level that indicates the sector is now contracting, marking the end of almost three years of growth in domestic manufacturing.
Since the beginning of the year, investors have pulled more than $53 billion from U.S. stock mutual funds. By comparison, these funds brought in $6.4 billion during the first five months of 2011 and lost just $18 billion during the first five months of 2010.
Meanwhile, bond mutual funds took in $3.4 billion in assets. while hybrid funds, which invest in both stocks and bonds, gained $1.1 billion.