Get 40% Off
🚀 Our AI Picked 6 Stocks that Jumped +25% in Q1. Which Picks Will Soar in Q2?Unlock full list

US equity funds draw inflows amid positive economic and inflation data

Published 02/02/2024, 06:14 AM
Updated 02/02/2024, 06:18 AM
© Reuters. FILE PHOTO: Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., January 31, 2024.  REUTERS/Brendan McDermid/File Photo

(Reuters) - U.S. equity funds saw renewed investor interest in the seven days leading to Jan. 31, propelled by encouraging signs of economic growth and a cooling inflation rate.

According to data from LSEG, U.S. investors purchased equity funds of about $1.83 billion on a net basis, breaking a four-week-long selling streak.

A Commerce Department report last week, showed that the U.S. economy grew much faster than expected at 3.3% in the last quarter, allaying concerns of an impending recession.

By segment, large-cap funds secured $3.43 billion, the most in a week since Dec. 27, 2023. Conversely, multi-, mid-, and small-cap funds lost $1.52 billion, $1.35 billion and $759 million, respectively in net selling.

Among sector funds, tech received $1.28 billion, the highest in seven weeks, followed by $271 million worth of net purchase in the industrials sector. The utilities sector, meanwhile, witnessed about $1.01 billion worth of outflows.

Simultaneously, U.S. bond funds attracted $7.09 billion, the biggest amount in a week since Jan. 3.

U.S. general domestic taxable fixed income funds drew $4.62 billion, the largest in three weeks.

© Reuters. FILE PHOTO: Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., January 31, 2024.  REUTERS/Brendan McDermid/File Photo

Short/intermediate investment-grade, and municipal debt funds also secured $2.63 billion and $1.48 billion respectively, while short/intermediate government & treasury funds faced $5.43 billion worth of net selling.

Additionally, investors poured about $40.39 billion into U.S. money market funds, turning net buyers after two weeks of net selling in a row.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.