According to LSEG Lipper data, U.S. equity funds saw inflows for the first time in four weeks, receiving a net of $5.58 billion during the week, the largest in five weeks. President Donald Trump's comments hinting at interest rate cuts and a tech rebound from Monday's losses drove this surge.
President Trump's recent advocacy for reducing global oil prices, interest rates, and taxes contrasted the Federal Reserve's decision to maintain rates steady.
Investors favored U.S. technology sector funds with net purchases of $2.12 billion, the highest since November 2023. They also acquired financials and industrials sector funds totaling $1.5 billion and $717 million, respectively.
Large-cap and small-cap equity funds attracted $1.13 billion and $1.51 billion in net inflows, while mid-cap and multi-cap segments faced outflows of $1.1 billion and $947 million.
In the debt market, U.S. bond funds gained $8.38 billion, marking the fourth consecutive week of net purchases. Among these, general domestic taxable fixed income funds, loan participation funds, and short-to-intermediate investment-grade funds attracted significant inflows of $3.46 billion, $1.5 billion, and $1.17 billion, respectively.
On the contrary, U.S. investors withdrew $35.05 billion from money market funds, marking the second week of net sales within six weeks.