(Reuters) – U.S. fairness funds confronted big outflows within the week ended Might 10, on warning over the U.S. debt ceiling and considerations over disappointing earnings forecasts from some prime corporations.

In response to Refinitiv Lipper, U.S. fairness funds confronted outflows price $5.7 billion, which was their seventh consecutive week of outflows.

Traders had been in search of an replace on plans for elevating the U.S. debt ceiling throughout the week, and worries of a possible authorities default as early as June 1 loom over Washington, if Congress doesn’t act to resolve the impasse.

A gathering between U.S. President Joe Biden and prime lawmakers that had been scheduled for Friday has been postponed to early subsequent week, with the IMF warning {that a} U.S. default would have “critical repercussions” for the U.S. economic system.

Apple Inc (NASDAQ:) provider Skyworks (NASDAQ:) and funds firm Paypal Holdings (NASDAQ:) Inc minimize their earnings outlooks throughout the week, including to warning amongst buyers.

U.S. bond market funds acquired a small influx of $532 million, whereas cash market funds obtained $10.4 billion.

U.S. high-yield bond funds and inflation-linked funds confronted outflows price $1.2 billion and $291 million, respectively. Alternatively, U.S. authorities bond funds acquired over $2 billion throughout the week.