For the fourth week in a row leading up to January 24, U.S. investors continued to lessen their investments in equity funds, indicating caution before a critical inflation report and a forthcoming Federal Reserve meeting.
US Investors Keep Withdrawing Funds From Equities for the 4th Week
U.S. equity funds experienced net outflows of $3.04 billion during this period, the smallest amount in the past four weeks. This trend was mitigated by a rally on Wall Street, mainly driven by solid gains in the tech sector following optimistic projections from TSMC and Super Micro Computer (SMCI.O).
U.S. value funds witnessed net redemptions totalling $2.76 billion, marking the largest outflow in five weeks. In contrast, growth funds saw an influx of $1.42 billion, their first weekly net inflow after three weeks.
The technology sector particularly attracted significant investor attention, with a net inflow of $1.27 billion, the highest in six weeks. On the other hand, the healthcare and industrial sectors experienced net withdrawals.
Don’t miss out the latest news, subscribe to LeapRate’s newsletter
In the realm of bond funds, U.S. investors sustained their interest for the fifth consecutive week, with net purchases amounting to $3.4 billion. Funds focused on U.S. short/intermediate government & treasury and short/intermediate investment-grade bonds attracted inflows of approximately $3.02 billion and $1.12 billion, respectively.
However, inflation-protected funds faced net outflows of $375 million. Simultaneously, U.S. money market funds saw a net withdrawal of $9.06 billion, continuing the net selling trend for a second week.
