As the ongoing US-Iran conflict continues to weigh on investor sentiment, UBS’s US retail market making clients recorded $164 million net inflows into ETFs on Wednesday, the largest single day of inflows for the year. However, this positive momentum was largely offset by record daily outflows from oil and gas equities, totaling nearly $800 million since the conflict began.

The heavy selling in energy stocks has been a trend since March 2, with the most heavily sold names including Exxon Mobil ($178 million), Chevron ($86 million), and BP ($38 million). These outflows mark the largest single day of net selling across the group in over 12 years of RMM data.

The shift in investor sentiment towards energy stocks is a significant change from previous market trends, where ETF inflows were the driving force behind market performance. This could be a sign of investors re-evaluating their risk appetite and adjusting their portfolios accordingly. With the ongoing geopolitical tensions and economic uncertainty, it’s possible that this shift in sentiment may continue in the near future.