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.Â
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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.
