U.S. equity funds saw outflows for a fourth straight week through May 7, driven by uncertainties around trade tariffs and as investors awaited U.S.-China trade talks for more clues.

Investors withdrew a net $16.22 billion from U.S. equity funds during the week, the largest weekly net sales since March 19, data from LSEG Lipper showed.

A U.S. trade deal with Britain on Thursday, however, has fueled guarded optimism for progress in tariff talks with other countries. U.S. President Donald Trump also signaled that productive talks with China could lead to lower tariffs.

"We continue to view U.S. equities as attractive, with a year-end S&P 500 target of 5,800," said Mark Haefele, chief investment officer at UBS Global Wealth Management.

U.S. large-cap and mid-cap equity funds suffered net outflows of $13.6 billion and $1.12 billion, respectively, during the week.

U.S. small-cap equity fund outflows, meanwhile, eased to a six-week low of $917 million.

U.S. sectoral funds saw a net $2.89 billion worth of sales. Investors divested financials, tech, and metals and mining funds worth $1.18 billion, $507 million and $420 million, respectively.

Sentiment towards U.S. fixed-income markets improved during the week as fund investors poured a net $3.53 billion - the most in eight weeks - into U.S. bond funds.

Short-to-intermediate government and treasury funds saw a net $1.15 billion worth of purchases, reversing a net $765 million of sales the prior week. Municipal debt funds also saw a net $1.06 billion worth of additions.

At the same time, investors snapped up a net $28.4 billion worth of money market funds in their largest weekly net purchase since March 5.