Last week, as U.S. stocks plummeted, Bank of America clients invested in U.S. stocks at the fourth highest level in history, reversing the record sell-off in March
Amid the sharp decline in the U.S. stock market, Bank of America clients invested a record $8 billion into the stock market last week, marking the fourth highest inflow in history. Institutional investors were the main force, ending three consecutive weeks of selling, while private clients recorded net purchases for 17 consecutive weeks. For the first time, there was an inflow of funds into technology stocks, and the short-term attractiveness of utility stocks increased. In terms of ETFs, financial and consumer discretionary ETFs received the most inflows, while energy ETFs experienced outflows
As U.S. President Trump's trade war led to a sharp decline in U.S. stocks, Bank of America clients actively rushed into the market to buy the dip, with last week's investment in the U.S. stock market reaching the fourth highest in history.
In stark contrast, according to a report from March 25, Bank of America clients recorded the largest scale of selling technology stocks last week.
Bank of America strategist Jill Carey Hall wrote in the latest research report on Tuesday that last week's net inflow of funds into U.S. stocks reached $8 billion, ranking fourth in weekly inflows based on data traceable to 2008, with the inflow accounting for the 31st proportion of market capitalization.
Among various clients, institutional clients, retail investors, and hedge funds were all net buyers:
Institutional investors were the main force, recording the largest inflow of funds since December last year, while ending a three-week trend of selling.
Private clients continued their record strong start, achieving net purchases for the 17th consecutive week, including the sixth largest weekly inflow in history.
Hedge funds also saw a slight net purchase for the first time since early February.
Corporate clients accelerated buybacks, exceeding typical seasonal levels for the first time in five weeks.
By sector, Bank of America's clients bought into 9 out of 11 sectors, led by technology stocks, which saw inflows for the first time in three weeks, marking the fifth largest weekly inflow since 2008. Only the consumer discretionary and utilities sectors experienced outflows.
Bank of America strategists pointed out that utility stocks have short-term attractiveness from large-cap to mid- and small-cap stocks. The difference in fund flows between cyclical and defensive sectors has been positive for the past four weeks, indicating that clients are not yet preparing for an economic recession.
In terms of ETFs:
The buying power covered various sizes and styles, but growth strategies were the only category without net inflows.
Financial and consumer discretionary ETFs received the most inflows, while energy ETFs experienced the largest outflows.
The S&P 500 index plummeted 9.1% last week, as Trump's announcement of comprehensive tariffs triggered a fierce sell-off in U.S. stocks on Thursday and Friday.
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