June 6 (Reuters) - U.S. money market funds witnessed

huge inflows in the week ended June 4 as investor caution over a

rise in U.S. tariffs on steel imports, uncertainties over

President Donald Trump's trade disputes with China and a crucial

employment report on Friday, boosted demand for safer investment

avenues.

According to LSEG Lipper data, U.S. investors bought a net

$66.24 billion worth of money market funds during the week,

registering their largest weekly net purchase since December 4,

2024.

At the same time, riskier equity funds faced a net $7.42

billion worth of weekly outflows, sharply higher than

approximately $5.39 billion worth of net disposals in the prior

week.

The small-cap segment witnessed a net $2.99 billion worth of

drawdowns, the highest for a week since April 30. Outflows from

multi-cap, mid-cap and large-cap funds stood at $2.13 billion,

$1.05 billion and $962 million, respectively.

Sectoral funds, meanwhile, experienced a minor $136 million

worth of inflows with investors adding a net $1.15 billion into

tech, and $309 million into consumer staples, while withdrawing

nearly $1.16 billion from financials.

Weekly net inflows into U.S. bond funds, meanwhile, cooled

to a four-week low of $4.8 billion during the week.

Despite the weaker demand in the broader segment, the

short-to-intermediate investment-grade funds turned popular,

grossing a net $3.98 billion- the highest since November 2024-

worth of inflows during the week.

Inflation-protected funds and general domestic taxable fixed

income funds also attracted a significant $634 million and $505

million, worth of inflows.