U.S. equity funds recorded robust inflows of $9.65 billion in the week ending October 22, reversing two weeks of outflows, according to LSEG Lipper data. The surge was fueled by strong corporate earnings and renewed optimism around trade diplomacy.
💼 Key Drivers
- Corporate Earnings Momentum: Strong results from General Motors, Coca-Cola, and 3M boosted investor sentiment.
- Trade Relief: Upcoming talks between U.S. President Donald Trump and Chinese President Xi Jinping eased concerns over U.S.-China trade tensions.
🔍 Sector Highlights
- Technology funds: Attracted $1.38 billion, a three-week high.
- Industrials: Added $805 million.
- Consumer staples: Gained $586 million.
🏦 Fixed Income & Cash Flows
- U.S. bond funds: Drew $8.4 billion, led by short-to-intermediate investment-grade bonds (+$3.63B, largest since July 2).
- Municipal debt funds: Added $1.12B.
- Money market funds: Logged $22.81B in inflows — the fourth gain in five weeks — as investors balanced risk exposure.
💬 Market Insight
The data underscores a renewed appetite for risk assets, with investors rotating back into U.S. equities amid earnings optimism and easing geopolitical pressures, while still maintaining defensive allocations in bonds and cash.