U.S. stock funds experienced their largest outflow in three months.

Investing.com — U.S. equity funds experienced the highest net outflow in three months during the week ending March 19. This trend was driven by concerns over U.S. tariff policies and a cautious approach ahead of the Federal Reserve's monetary policy decision. According to LSEG Lipper data, investors withdrew $33.53 billion from U.S. stock funds throughout the week, marking the largest weekly net outflow since December 18. The previous week had seen a net inflow of $4.84 billion.

The Federal Reserve left the benchmark overnight interest rate unchanged on Wednesday but hinted at the possibility of two quarter-point rate cuts this year. Additionally, the Fed projected slower economic growth and higher inflation. Large-cap U.S. funds recorded a net sale of $27.38 billion after three consecutive weeks of buying, while small-cap, multi-cap, and mid-cap funds saw outflows of $3.48 billion, $1.42 billion, and $1.09 billion, respectively.