U.S. equity funds recorded $32.27 billion in net outflows in the week through Sept. 9, their largest weekly withdrawal since December 2025, as the Iran war pushed oil prices above $100 a barrel and intensified concerns about inflation and interest rates. Large-cap funds accounted for $40.44 billion of withdrawals, but flows into exchange-traded funds showed investors were selectively maintaining exposure to broad equities, technology and semiconductors. Vanguard's S&P 500 ETF, known as VOO, recorded $2.99 billion in net creations on Wednesday, followed by $2.73 billion for Invesco QQQ Trust and $1.26 billion for SPDR S&P 500 ETF Trust. Semiconductor ETFs also attracted substantial inflows. Investors simultaneously increased defensive allocations: U.S. bond funds extended their buying streak to 21 weeks, and short-term Treasury ETFs drew $12.2 billion over the 20 trading sessions through Sept. 8. The combined activity points to portfolio repositioning rather than a uniform exit from equities as investors weigh large-cap and AI-linked growth prospects against elevated oil prices, persistent inflation and higher-for-longer interest-rate risks.