U.S. equity funds pull first weekly inflow in seven weeks

(Reuters) – U.S. equity funds attracted net inflows in the week to May 25 as shares rallied, with stock markets breaking the longest streak of weekly declines since the dotcom bubble burst. According to Refinitiv Lipper data, investors purchased U.S. equity funds worth a net $4.61 billion, the first weekly inflow since April 6 and the biggest since March 23.

Graphic: Fund flows: US equities bonds and money market funds – https://globalrubbermarkets.com/wp-content/uploads/2024/08/u-s-equity-funds-pull-first-weekly-inflow-in-seven-weeks-1.jpg

The S&P 500 and the Nasdaq Composite, have both gained more than 3% this week after seven straight weeks of losses, their longest losing streak since 2001.

Upbeat outlooks from domestic companies including the largest U.S. lender JPMorgan Chase & Co (NYSE:JPM) and Vans brand owner VF Corp (NYSE:VFC) helped boost sentiment.

First-quarter earnings reports available for 491 of the S&P 500 companies show 78% beat expectations, according to Refinitiv. U.S. large-cap equity funds drew net inflows of $9.35 billion, the biggest in 15-weeks, but small- and mid-cap funds saw net outflows of $1.42 billion and $0.75 billion respectively.

Investors secured value funds of $0.48 billion after two weeks of sales but growth funds posted a seventh weekly outflow worth $2.11 billion.

Graphic: Fund flows: US growth and value funds – https://globalrubbermarkets.com/wp-content/uploads/2024/08/u-s-equity-funds-pull-first-weekly-inflow-in-seven-weeks-2.jpg

While industrials attracted $0.77 billion in net buying, financials and tech suffered outflows of about $1.2 billion each.

Graphic: Fund flows: US equity sector funds – https://globalrubbermarkets.com/wp-content/uploads/2024/08/u-s-equity-funds-pull-first-weekly-inflow-in-seven-weeks-3.jpg

U.S. investors remained net sellers of bond funds for a 20th week, to the tune of $4.94 billion, albeit the smallest amount in four weeks.

They sold U.S. taxable bond funds worth $4.41 billion and municipal funds worth $1.21 billion.

U.S. high yield bond funds and general domestic taxable funds saw net outflows of $4.57 billion and $1.61 billion respectively, but short/intermediate government & treasury and inflation protected funds drew $1.96 billion and $1.04 billion in net inflows.

Graphic: Fund flows: US bond funds – https://globalrubbermarkets.com/wp-content/uploads/2024/08/u-s-equity-funds-pull-first-weekly-inflow-in-seven-weeks-4.jpg

U.S. money market funds attracted $44.07 billion worth of inflows after two weeks of net selling.

Source: Investing.com