(Reuters) -U.S. equity funds attracted inflows for the first time in five weeks in the week through May 14 as optimism over progress in tariff negotiations and easing concerns about rising consumer prices lifted investor sentiment.
According to LSEG Lipper data, investors bought a net $12.86 billion worth of U.S. equity funds, which marked their first weekly net purchase since April 9.
Following the 90-day U.S.-China tariff truce reached on Monday, investors now anticipate that Washington will move toward agreements to roll back steep tariffs.
Softer-than-expected U.S. consumer inflation data for April further eased concerns about tariff-driven price pressures.
Large-cap U.S. equity funds attracted $5.06 billion in net inflows, partially reversing $13.6 billion in outflows recorded the previous week. Small-cap funds also saw net purchases of $1.05 billion, while mid-cap funds registered net redemptions of approximately $650 million.
U.S. sector equity funds pulled in $2.77 billion, marking the strongest weekly inflow since January 29. The financial, industrial, and healthcare sectors led the charge, with inflows of $596 million, $559 million, and $475 million, respectively.
U.S. bond funds posted a robust $10.14 billion in net inflows—the largest weekly total since July 17, 2024.
General domestic taxable fixed income funds received $3.09 billion, their biggest weekly intake since February 5. Short-to-intermediate investment-grade and mortgage bond funds drew $1.76 billion and $1.43 billion, respectively, while short-to-intermediate government and Treasury funds saw net outflows of $2.15 billion.
Meanwhile, U.S. money market funds experienced $9.43 billion in net outflows, following $28.8 billion in inflows the previous week.
(Reporting by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru;)
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