As U.S. stocks decline, the scale of U.S. money market funds surpasses $7 trillion
Money market funds attracted over $51 billion in inflows within a week, and if the U.S. economy and trade policies continue to fluctuate, the size of money market funds is expected to continue to expand
Amid increased volatility in the U.S. stock market, a large number of investors are flocking to low-risk assets in search of safety, driving the scale of money market funds to a record high.
As of March 6, data from the Investment Company Institute (ICI) shows that the total scale of money market funds has reached $7.03 trillion, attracting over $51 billion in inflows within a week.
Trump's recent statements on imposing, withdrawing, or delaying tariffs on major trading partners such as Canada and Mexico have significantly impacted Wall Street, with the S&P 500 index dropping nearly 2% on Thursday.
Market panic sentiment has clearly risen, with the short-term contract "fear index" VIX ETF soaring over 11% yesterday, approaching its highest level since mid-December last year. 
Money Market Funds Become the Preferred Safe Haven
In an environment of increasing market turmoil, money market funds, with their stable returns and high liquidity characteristics, have become an ideal choice for investors seeking safety. These funds primarily invest in relatively safe short-term government debt, providing stable returns for investors.
If U.S. economic and trade policies continue to fluctuate, the scale of money market funds is expected to continue to expand, and investor risk aversion may continue to dominate market trends. Peter Tchir, head of macro strategy at Academy Securities, stated:
The recent weak performance of the stock market and increased uncertainty provide investors with a "good excuse to pull back some chips," benefiting money market funds.
ICI Chief Economist Shelly Antoniewicz pointed out:
The recent strong inflows may be a response to the surge in financial market volatility. With short-term interest rates still at historically high levels, the interest earned by money market funds is relatively more attractive to both institutional and retail investors.
Analysts believe that as market uncertainty persists, investors may continue to allocate funds to these low-risk assets until the investment environment becomes clearer