US equity funds draw big inflows on bank earnings, rate cut hopes
Monday, 21 October 2024
US investors made large investments in equity funds in the week to October 16, buoyed by strong third-quarter earnings from US lenders and optimism over a potential Federal Reserve rate cut in November and signs of cooling inflation, reports Reuters.
According to LSEG data, US equity funds drew a sharp $20.08 billion in net purchases during the week, following about $3.98 billion worth of inflows in the previous week.
Strong earnings reports from mega-cap banks including Morgan Stanley, JP Morgan Chase and Goldman Sachs boosted investor sentiment, driving Wall Street's major indexes to records this week.
The financial sector gained a substantial $1.17 billion worth of inflows, the highest in three months. Technology and industrial sector funds saw a net $473 million and $378 million worth of purchases.
By segment, investors racked up a net $15.25 billion of large-cap funds, a sharp rebound from $4.25 billion in net sales during the previous week. Mid-cap, multi-cap, and small-cap funds witnessed $1.49 billion, $617 million and $473 million worth of inflows.
US bond funds received $9.78 billion, the biggest weekly inflow in three months.
Investors scooped up US general domestic taxable, short-to-intermediate investment-grade, and municipal debt funds worth a remarkable $2.12 billion, $2.04 billion and $1.72 billion, respectively.
Money market funds suffered $11.79 billion worth of net sales, the first weekly outflow in four weeks.