(Reuters) – U.S. equity funds attracted big inflows in the seven days to July 17, driven by expectations of a U.S. interest rate cut amid cooling consumer prices and robust corporate earnings.
According to LSEG data, investors pumped $21.7 billion into U.S. equity funds during the week, the largest weekly net inflow since February 2021.
Earlier this week, the S&P 500 and the Dow Jones Industrial Average reached record highs following a weaker U.S. consumer price report the previous week, which fuelled speculation of a Federal Reserve rate cut. However, a sell-off in the chip sector and a rotation by investors away from mega-cap growth stocks drove the market lower on Thursday.
Meanwhile, upbeat results from insurer UnitedHealth Group, and major banks including Bank of America, Goldman Sachs and Citigroup, also boosted inflows into equity funds during the week.
U.S. small-cap funds saw a significant surge in demand as they received $8.67 billion, the largest weekly inflow since at least October 2020.
Large-cap and multi-cap funds garnered $10.34 billion and $509 million of inflows, respectively, while mid-cap funds saw $1.22 million of outflows.
Among sectors, finance, industry and technology were popular as investors pumped $1.85 billion, $1.59 billion and $880 million into these funds, respectively.
U.S. bond funds, meanwhile, attracted $10.4 billion of net investments, the seventh weekly inflow in a row.
General domestic taxable fixed income funds received $3.44 billion, extending inflows into a fourth week. Loan participation and short/intermediate investment-grade funds also saw $1.28 billion and $1.15 billion of net purchases, respectively.
Money market funds, meanwhile, received $1.63 billion, the smallest inflow in three weeks.
(Reporting by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru; Editing by Mark Potter)
Comments