U.S. equities saw nearly $17 billion in outflows last week, according to Bank of America Corp. data. The pullback coincided with President Donald Trump’s threat to impose tariffs on some European nations over Greenland. This marks a notable shift in investor sentiment during a tense geopolitical backdrop.

The outflow suggests investors are reacting to renewed trade war fears, a familiar market driver since Trump’s first term. Tariff threats typically spark volatility, prompting funds to seek safer assets like bonds or gold. For portfolio managers, this underscores the sensitivity of equity markets to protectionist rhetoric.

What to watch: whether this is a brief reaction or the start of a longer trend. If tariffs materialize, sectors like autos and aerospace could face direct pressure. The coming weeks will test if this outflow is a one-off or signals deeper caution among global investors.