Investors ditched U.S. equity funds worth a net $21.93 billion during the week in their largest weekly net disposal since mid-December 2022, data from LSEG showed.
Despite the Fed leaving interest rates unchanged and tempering expectations for rate cuts this year, the S&P 500 and the Nasdaq Composite both reached record closing highs for the third consecutive session, buoyed by data suggesting inflation is cooling.
Large-cap equity funds saw the most significant outflow, with $14.94 billion leaving these funds, marking the largest weekly outflow since December 21, 2022. Outflows also hit multi-cap, mid-cap, and small-cap funds, which saw $2.37 billion, $1.43 billion, and $816 million in net withdrawals, respectively.
Conversely, investors sought safety in U.S. bond funds and money market funds, adding $1.72 billion and $20 billion, respectively. U.S. sectoral equity funds, however, enjoyed their second consecutive week of inflows, amassing about $1.85 billion, buoyed by $1.8 billion in net purchases in the technology sector.
Additionally, U.S. bond funds attracted a net $4.82 billion, marking their second consecutive week of inflows. U.S. general domestic taxable fixed income funds received a robust $2.44 billion, the highest in five weeks, while short/intermediate investment-grade and loan participation funds garnered $841 million and $546 million in inflows, respectively.
Source: Economy - investing.com
