Aug 9 (Reuters) - U.S. investors shifted heavily into

money market funds in the week ending Aug. 7, retreating from

riskier assets during a stock market sell-off fueled by fears

over an economic slowdown.

According to LSEG data, investors poured a massive $47.48

billion into U.S. money market funds in the largest weekly

inflow since April 3, while simultaneously offloading $7.39

billion in equities, ending a three-week buying streak.

Last week, a weaker-than-expected U.S. payrolls report and

disappointing manufacturing data raised concerns about the

economy's health, fueling a further sell-off in stock markets.

U.S. investors withdrew $2.42 billion from small-cap funds,

breaking a streak of three consecutive weeks of net purchases.

Meanwhile, U.S. mid-cap and multi-cap funds saw outflows of $400

million and $382 million, respectively, although large-cap funds

attracted $1.68 billion in net purchases.

By sector, financials saw a significant outflow of $1.36

billion as investors turned net sellers after three weeks of net

purchases. Technology and communication services sectors also

experienced notable outflows, totaling $657 million and $521

million, respectively

Demand for U.S. bond funds also cooled during the week as

they received just $452 million, the smallest amount for a week

in 10.

Investors dumped a sharp $3.07 billion worth of loan

participation funds, registering the largest weekly net sales

since at least October 2020. Conversely, short/intermediate

investment-grade, and municipal debt funds gained $1.31 billion

and $674 million worth of inflows.