©Reuters. A trader looks at a screen tracking the S&P 500 on the floor of the New York Stock Exchange (NYSE) in New York, U.S., April 27, 2017. REUTERS/Brendan McDermid
(Reuters) – U.S. stock funds saw robust demand in the seven days to March 20, supported by Wall Street’s continued rally and expectations of rate cuts by the Federal Reserve later this year.
Investors bought US equity funds worth a net $14.07 billion during the week, marking the largest weekly net purchase since mid-June 2023, according to LSEG data.
The new record was reached this week at 5,261.1, after the Federal Reserve indicated on Wednesday that it still plans to cut US interest rates three times this year despite recent high inflation data.
US large-cap funds, in particular, attracted a significant $15.31 billion, the largest amount since March 22, 2023. Investors, however, lost US multi-, small- and mid-cap funds by 676 respectively. million dollars, 648 million dollars and 481 million dollars. .
Technology, metals and mining, and real estate funds led the sector inflows, receiving $766 million, $463 million, and $333 million on a net basis, respectively. The financial sector still faces net sales worth $1.07 billion.
U.S. investors, meanwhile, poured $1.44 billion into bond funds, breaking their 12-week buying spree.
They sold high-yield and short/intermediate U.S. government and Treasury funds for a net total of $2.02 billion and $1.99 billion, respectively, but still acquired short/intermediate investment-grade funds for about 1. 38 billion dollars.
Inflows into U.S. bond funds slowed sharply to $3.81 billion net from $10.54 billion the previous week.
At the same time, money market funds saw a net outflow of $65.79 billion, the largest amount since mid-October 2023.