Under the boost of optimistic sentiment, U.S. stock funds have attracted inflows for the fifth consecutive week
U.S. stock funds attracted inflows for the fifth consecutive week, mainly driven by the rise in U.S. stocks, optimistic economic growth sentiment, and expectations of interest rate cuts by the Federal Reserve. According to LSEG data, for the week ending November 4, net inflows reached $8.85 billion, compared to $11.8 billion the previous week. Large-cap funds saw inflows of $6.6 billion, while small-cap and mid-cap funds attracted $2.59 billion and $585 million, respectively. Meanwhile, funds in the technology and healthcare sectors experienced net outflows of $914 million and $538 million, respectively
According to Zhitong Finance APP, driven by the rise of major U.S. stock indices, optimistic sentiment about strong economic growth, and expectations for the Federal Reserve to cut interest rates for the third consecutive time this month, U.S. stock funds have attracted inflows for the fifth consecutive week. According to LSEG data, for the week ending November 4, U.S. stock funds saw a net inflow of $8.85 billion, compared to a net inflow of approximately $11.8 billion the previous week.
The Federal Reserve's Beige Book indicated that economic activity in most regions of the U.S. has slightly expanded since early October. Meanwhile, market participants are also preparing for a possible rate cut later this month. The CME "FedWatch" shows that the market currently expects a 66.7% chance of the Federal Reserve cutting rates by 25 basis points this month.
Additionally, for the week ending November 4, U.S. large-cap stock funds received a net inflow of $6.6 billion, the highest level in three weeks; U.S. small-cap stock funds and multi-cap stock funds saw net inflows of $2.59 billion and $585 million, respectively.
By sector, technology sector funds experienced a net outflow of $914 million, while healthcare sector funds faced a net outflow of $538 million.
U.S. bond funds welcomed a net inflow of $3.7 billion, but this is the lowest level in six weeks. U.S. money market funds saw a net inflow of $121.34 billion, the largest single-week net inflow since April 2020