US equity funds recorded the biggest weekly inflow for the last 10 months
In the week leading up to Nov. 16, U.S. equity funds attracted massive inflows as signs of slowing inflation eased investor fears of a more aggressive Federal Reserve rate hike.
According to data from Refinitiv Lipper, U.S. equity funds obtained a net of $16.65 billion, the biggest weekly inflow since Dec. 29.
Analysts at the bank said in a Tuesday note that allocations to equities reached the third-highest sum since 2008 during the five-day period, according to client data — a sign investors believe indicates that the market sell-off is nearing an end. But BofA contested the notion that the worst is behind for the stock market.
After surging for the first two days of last week, a jobs day plunge erased much of the gains. Still, stocks managed to end the week higher after three straight weeks of losses.
Bank of America noted that the broad-based shopping spree across U.S. equities ranged from single stocks to exchange-traded funds while the purchases spanned hedge funds, institutions, and individual investors. Institutional investors were the biggest buyers, recording their first inflow in a month and largest inflow since December 2020.