July 11 (Reuters) - U.S. equity funds saw a significant

drop in net investments in the week through July 9 on caution

over President Donald Trump's threats of fresh tariffs on

trading partners, even though stocks surged to new records on

rising demand in the artificial intelligence sector.

Investors acquired just $2.1 billion worth of U.S. equity

funds during the week when compared with a robust $31.6 billion

worth of net accumulations in the prior week, data from LSEG

Lipper showed.

President Trump this week extended the tariff deadline until

August 1 to facilitate trade negotiations, but announced

noticeably higher duties for some key trading partners including

Japan, South Korea, Canada and Brazil alongside a 50% tariff on

copper.

U.S. multi-cap funds saw the first weekly net investment in

four weeks to the tune of $1.8 billion. Large-cap, mid-cap and

small-cap funds, meanwhile, suffered net outflows of $2.83

billion, $785 million and $472 million, respectively.

Sectoral funds saw net purchases extended into a second

successive week, with approximately $1.28 billion flowing into

these funds. Tech drew in $1.7 billion but healthcare saw net

outflows of $874 million.

U.S. money market funds faced a net $9.78 billion weekly

outflow, ending two weeks of buying.

Inflows into U.S. bond funds, meanwhile, cooled to a

three-week low of $4.34 billion.

Short-to-intermediate investment-grade funds received $1.76

billion with weekly net investments dropping by 57% over the

week. General domestic taxable fixed income funds received just

$634 million compared with a net $3.03 billion purchase in the

prior week.

Short-to-intermediate government and treasury funds,

meanwhile, attracted $982 million, the largest amount in four

weeks.