(Reuters) – U.S. equity funds attracted inflows for the first time in four weeks in the week through Jan. 29, spurred by hopes of interest rate cuts following comments from President Donald Trump, and a rebound in tech shares following Monday’s losses.
As per LSEG Lipper data, U.S. equity funds received a net $5.58 billion during the week, the biggest inflow in five weeks, following three weeks of outflows in a row.
Last week, President Donald Trump expressed a desire to lower global oil prices, interest rates, and taxes at the World Economic Forum, while the Federal Reserve opted to keep rates steady this week.
Investors purchased U.S. technology sector funds of a net $2.12 billion, the most for a week since November 2023. They also snapped up financials and industrials sector funds worth $1.5 billion and $717 million, respectively.
U.S. large-cap and small-cap equity funds also witnessed a net $1.13 billion and $1.51 billion worth of inflows during the week. The mid-cap and multi-cap segments, however, suffered $1.1 billion and $947 million worth of outflows, respectively.
In the debt market, investors poured $8.38 billion into U.S. bond funds, extending net purchases into a fourth successive week.
They invested a significant $3.46 billion into general domestic taxable fixed income funds for a fourth successive week of net purchases. Loan participation funds and short-to-intermediate investment-grade funds also experienced a notable $1.5 billion and $1.17 billion worth of inflows during the week.
Meanwhile, U.S. investors divested a net $35.05 billion worth of money market funds, marking a second weekly net sales in six weeks.
(Reporting by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru; Editing by Shreya Biswas)
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