Stock Groups

U.S. equity funds pull first weekly inflow in seven weeks -Breaking

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© Reuters. FILE PHOTO: An trader operates on the New York Stock Exchange (NYSE), in Manhattan, New York City. May 18, 2022. REUTERS/Andrew Kelly

(Reuters) – U.S. equity fund net inflows increased in the week ending May 25, as stocks rallied and broke the longest weekly decline streak since the burst of the dotcom bubble. Refinitiv Lipper data shows that investors bought U.S. equity fund worth $4.61 Billion, which is the largest weekly inflow since April 6, and the most since March 23, according to Refinitiv Lipper.

Graphic: Fund flows: US equities bonds and money market funds – https://fingfx.thomsonreuters.com/gfx/mkt/zdpxowkwavx/Fund%20flows%20US%20equities%20bonds%20and%20money%20market%20funds.jpg

Both the and the have seen their share of gains exceed 3% after losing seven weeks straight, their longest losing streak ever since 2001.

Upbeat outlooks from domestic companies including the largest U.S. lender JPMorgan Chase & Co (NYSE:) and Vans brand owner VF Corp (NYSE:) helped boost sentiment.

First-quarter earnings reports available for 491 of the S&P 500 companies show 78% beat expectations, according to Refinitiv. The net inflows to large-cap U.S. equity funds were $9.35 Billion, which is the largest in fifteen weeks. However, net outflows to small- and medium-cap funds were $1.42 Billion and $0.75 Billion, respectively.

After just two weeks, value funds were secured by investors for $0.48 Billion. However growth funds saw a weekly outflow of $2.11 Billion.

Graphic: Fund flows: US growth and value funds – https://fingfx.thomsonreuters.com/gfx/mkt/akpezrxrlvr/Fund%20flows%20US%20growth%20and%20value%20funds.jpg

While the net purchasing of industrials was $0.77 trillion, outflows to financial and tech were approximately $1.2 billion.

Graphic: Fund flows: US equity sector funds – https://fingfx.thomsonreuters.com/gfx/mkt/lgpdweaedvo/Fund%20flows%20US%20equity%20sector%20funds.jpg

U.S. bond fund investors were net sellers for the 20th week to $4.94 trillion, the lowest amount in the last four.

They purchased U.S. taxable bonds funds in the amount of $4.41 trillion, and $1.21 billion worth municipal funds.

U.S. high yield bond funds and general domestic taxable funds saw net outflows of $4.57 billion and $1.61 billion respectively, but short/intermediate government & treasury and inflation protected funds drew $1.96 billion and $1.04 billion in net inflows.

Graphic: Fund flows: US bond funds – https://fingfx.thomsonreuters.com/gfx/mkt/egvbkwqwzpq/Fund%20flows%20US%20bond%20funds.jpg

After two weeks of net sales, U.S. money markets funds received $44.07 billion inflows.

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