U.S. equity funds recorded $11.12 billion in net outflows in the week through September 2, their second consecutive weekly withdrawal, according to LSEG Lipper data. Rising bond yields and oil prices, following a U.S. strike on Iranian military targets near the Strait of Hormuz and Tehran's reported targeting of U.S. assets across the region, weighed on sentiment. Strong results from Nvidia and Dell Technologies helped support the view that the AI spending boom and related market trade remained intact. Large-cap funds accounted for $7.52 billion of outflows, while mid-cap and small-cap funds lost $572 million and $1.83 billion, respectively. Sectoral funds saw $3.48 billion in net selling, led by technology, financials and industrials. Bond fund inflows fell to $4.27 billion, a five-week low, while money market funds attracted nearly $48.76 billion, their highest weekly intake in four weeks.