Investors Pour Billions into U.S. Equity and Bond Funds Amid Earnings Optimism
U.S. equity funds and bond funds saw significant inflows during the week ending July 30, driven by optimism over U.S.–EU trade deals and positive corporate earnings. Large-cap equity funds received $7.81 billion, while the financial and tech sectors also saw substantial investments. U.S. bond funds marked their 15th consecutive week of inflows.
For the first time in three weeks, U.S. equity funds attracted monetary inflows, driven by positive sentiment surrounding a U.S.–EU trade agreement and robust corporate earnings. Investors poured a net $6.34 billion into U.S. equity funds, marking the largest weekly net purchase since early July, according to data from LSEG Lipper.
The S&P 500 and Nasdaq reached record highs on Thursday, fueled by stellar earnings reports from tech giants Microsoft and Meta Platforms, before closing slightly below those peaks. LSEG data indicated that 81% of the 317 S&P 500 companies that reported earnings so far have exceeded analyst expectations, surpassing the average beat rate of 76% from the past four quarters.
Large-cap equity funds observed a significant net inflow of $7.81 billion during the week, halting a three-week trend of net sales. Conversely, small-cap and mid-cap funds faced net sales of $3.9 billion and $35 million, respectively. Sectoral funds experienced net gains for a second week in a row, with the financial and technology sectors attracting $650 million and $583 million, respectively.
(With inputs from agencies.)
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