U.S. equity funds experienced robust inflows in the week ending October 1, driven by renewed hopes of Federal Reserve rate cuts following an inflation report that eased concerns over rising prices.
Data from LSEG Lipper shows investors poured a net $36.4 billion into U.S. equity funds, the largest weekly net purchase since November 13, 2024. Large-cap funds led the way with $40.8 billion in net inflows, while mid-cap and small-cap funds saw outflows of $2.28 billion and $2.59 billion, respectively.
Sectoral flows were notable as well:
- Technology: $3.04B net inflow after two weeks of outflows
- Industrials: $652M net inflow
- Communication services: $497M net inflow
Meanwhile, U.S. bond funds saw $1.58B in net outflows, ending a 23-week streak of inflows. Short- and intermediate-term government and treasury funds recorded $9.37B in net outflows, marking the largest weekly decline since at least January 2022. In contrast, short- to intermediate-term investment-grade and domestic taxable fixed income funds received $1.95B and $1.55B, respectively. Money market funds saw strong weekly inflows of $47.1B, the highest in four weeks.