Interest rate cut expectations trigger a surge of funds, with US stock funds attracting the highest inflow in nearly a year
U.S. stock funds saw a significant inflow of funds due to expectations of interest rate cuts, with a net purchase amount reaching $36.41 billion in a single week, the highest in nearly a year. Large-cap stock funds performed exceptionally well, with a net inflow of $40.75 billion. Technology sector funds also received an increase of $3.04 billion, while bond funds faced a sell-off of $1.58 billion, ending a 23-week trend of net purchases. The net investment amount in money market funds reached $47.08 billion, a four-week high
According to Zhitong Finance APP, in the week ending October 1, U.S. stock funds saw a significant influx of capital due to market expectations that the Federal Reserve would cut interest rates again. LSEG Lipper data shows that investors purchased a total of $36.41 billion worth of U.S. stock funds this week, marking the largest single-week net inflow since November 13, 2024.
Large-cap stock funds performed exceptionally well, with a net inflow of $40.75 billion, the largest single-week inflow since at least 2022. However, small-cap and mid-cap stock funds experienced outflows of $2.59 billion and $2.28 billion, respectively.
Among sector funds, after two weeks of net redemptions, investors bought $3.04 billion worth of technology sector funds. Additionally, they increased their holdings in industrial and communication services sector funds by $652 million and $497 million, respectively.
Meanwhile, investors sold $1.58 billion worth of bond funds, ending a 23-week trend of net purchases. They sold U.S. short- to medium-term government bonds and treasury bonds, with net sales reaching $9.37 billion, the largest single-week sales since at least January 2022.
At the same time, U.S. short- to medium-term investment-grade funds and general domestic tax-exempt fixed-income funds saw net inflows of $1.95 billion and $1.55 billion, respectively.
Additionally, the weekly net investment in money market funds surged to $47.08 billion, reaching a new high for the past four weeks
