Bank of America customers bought heavily into US stocks last week, led by institutional investors, with accelerated buybacks
Last week, the fund inflow of Bank of America's clients was the tenth largest since the data was available in 2008, and it was the first net inflow in nearly five weeks. However, hedge funds and retail investors at Bank of America sold stocks
According to a research report released by the quantitative strategy team led by Jill Carey Hall of Bank of America on Tuesday, last week, Bank of America's clients became net buyers of US stocks for the first time in over a month, purchasing stocks during the market crash on "Black Monday" on August 5th and the subsequent recovery period.
Last week, the inflow of funds from Bank of America's clients was the tenth largest since Bank of America has data since 2008, and it was the first net inflow in nearly five weeks.
Institutional investor clients of Bank of America dominated the buying of US stocks last week, with these investors net buying $5.8 billion of US stocks, while hedge funds and retail investors sold stocks. Bank of America's corporate clients accelerated their buybacks last week, with buyback levels continuing to be higher than typical seasonal levels.
From an industry perspective:
- The technology and communication services sector recorded the largest single-week fund inflow, and it has received the largest cumulative fund inflow of all sectors since the beginning of the year, marking the first fund inflow in the technology industry in four weeks.
- The financial industry closely followed the technology and communication services sector, recording the second largest fund inflow.
- The industrial sector received the largest fund inflow since March.
- Bank of America's clients sold energy, consumer staples, real estate, and utilities stocks. Among them, the selling of energy stocks continued for the third consecutive week, marking the longest selling period recently.
Last week, the US stock market experienced a huge shock, with the S&P 500 index experiencing its best and worst trading days since 2022 within a week, with ups and downs, ultimately ending the week roughly flat.
Carey Hall stated that the flow of client funds at Bank of America tends to weaken in the autumn months, and it is expected that the stock market will continue to be very volatile before the US election