AI Bubble, Fed Hike Fears Have Investors Fleeing Growth Stocks

  • Nasdaq 100 Index heads for best first half to a year ever
  • US growth funds still post outflows of $44 billion in 2023
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An artificial-intelligence frenzy has the US stock market captivated, powering the Nasdaq 100 Index to its best first half to a year ever. But with each tick higher traders are becoming increasingly skittish about soaring growth stocks.

Investors have yanked nearly $44 billion from US stock mutual funds and exchange-traded funds that track growth shares since the start of the year, according to data compiled by Refinitiv Lipper. In the second quarter alone, preliminary net outflows were $20 billion, the data show.