In a report released today, U.S. investors bought into equity funds for the fifth consecutive week, spurred by a rally in Wall Street’s indexes and expectations of another Federal Reserve rate cut this month.
According to LSEG data, investors added a net $8.85 billion to U.S. equity funds this week, down from $11.8 billion the previous week.
This week large-cap funds attracted $6.6 billion, while small-cap and multi-cap funds gained $2.59 billion and $585 million.
Sector funds had a net outflow of $321 million, however the market saw a significant withdrawal from the tech ($914 million) and healthcare ($538 million) sectors.
Net purchases in U.S. bond funds fell to $3.7 billion but still saw gains in investment-grade, taxable fixed income, and municipal funds of $2.01 billion, $1.36 billion, and $1.15 billion, respectively.
Investors also placed $121.34 billion into U.S. money market funds, the largest weekly inflow since April 2020.
The Federal Reserve recently stated that economic activity has slightly expanded since October; therefore, they will proceed with ‘caution’ in deciding on a potential rate cut.
CEO NA Editorial Staff
