The U.S. equity funds experienced strong inflows to the week and on October 1, with a fresh bet on rate cuts as an inflation report alleviated concerns that a surge in prices would compel the Federal Reserve to withhold support to the weakening labor market.
According to LSEG Lipper data, investors purchased a net $36.41 billion of U.S. equity funds in the week, the biggest weekly net purchase since November 13, 2024.
The large-cap funds segment was the most noticeable since it attracted a net of $40.75 billion in weekly inflows, the most since at least 2022.
Therefore, Small-cap and mid-cap funds have experienced an exodus of funds amounting to $2.59 billion and $2.28 billion.
After two weeks of the net sales sectoral funds investors bought tech sector funds of net $3.04 billion.
They also included funds to the tune of $652 million and $497 million in the industrial and the communication services sectors, respectively.
Meanwhile, the investors dumped a net of $1.58 billion of bond funds, ending a 23-week streak of net buying.
Their largest weekly sales since at least January 2022 were net withdrawals of U.S. short-to-intermediate government and treasury funds amounting to a net $9.37 billion.
Thus, the U.S. short-to-intermediate investment-grade funds and general domestic taxable fixed-income funds received net inflows of $1.95 billion and $1.55 billion, respectively.
Net investments at the money market funds, on the other hand, increased to a four-week high of 47.08 billion in the week.
