May 9 (Reuters) - U.S. equity funds saw outflows for a

fourth straight week through May 7, driven by uncertainties

around trade tariffs and as investors awaited U.S.-China trade

talks for more clues.

Investors withdrew a net $16.22 billion from U.S. equity

funds during the week, the largest weekly net sales since March

19, data from LSEG Lipper showed.

A U.S. trade deal with Britain on Thursday, however, has

fueled guarded optimism for progress in tariff talks with other

countries. U.S. President Donald Trump also signaled that

productive talks with China could lead to lower tariffs.

"We continue to view U.S. equities as attractive, with a

year-end S&P 500 target of 5,800," said Mark Haefele, chief

investment officer at UBS Global Wealth Management.

U.S. large-cap and mid-cap equity funds suffered net

outflows of $13.6 billion and $1.12 billion, respectively,

during the week.

U.S. small-cap equity fund outflows, meanwhile, eased to a

six-week low of $917 million.

U.S. sectoral funds saw a net $2.89 billion worth of sales.

Investors divested financials, tech, and metals and mining funds

worth $1.18 billion, $507 million and $420 million,

respectively.

Sentiment towards U.S. fixed-income markets improved during

the week as fund investors poured a net $3.53 billion - the most

in eight weeks - into U.S. bond funds.

Short-to-intermediate government and treasury funds saw a

net $1.15 billion worth of purchases, reversing a net $765

million of sales the prior week. Municipal debt funds also saw a

net $1.06 billion worth of additions.

At the same time, investors snapped up a net $28.4 billion

worth of money market funds in their largest weekly net purchase

since March 5.