Record inflow of $31.6 billion into US equity funds driven by AI optimism

U.S. equity funds saw strong inflows as stocks hit record highs on AI optimism, with $31.6 billion acquired in the largest weekly purchase since November 13, 2024. Micron Technology’s forecast of robust fourth-quarter sales boosted optimism for AI-linked stocks.

Sectoral funds attracted $3.4 billion in net inflows, with technology and financial sectors leading at $1.17 billion and $1.04 billion, respectively. The large-cap U.S. equity funds segment had its best week since December 25, 2024, pulling in $31.04 billion, while mid-cap and small-cap funds had $1.72 billion and $1.09 billion in net sales.

Investors continued to show interest in U.S. bond funds, with a net $6.66 billion invested for an 11th consecutive week of net buying. The short-to-intermediate investment-grade funds segment gained a weekly inflow of $4.14 billion, the largest since November 20, 2024.

Weekly net investments in money market funds reached $57.98 billion, the highest in four weeks. General domestic taxable fixed income funds received $3.03 billion, while short-to-intermediate government & treasury funds experienced a net outflow of $2.11 billion.

(Source: Reuters, Gaurav Dogra)

Read more at Yahoo Finance: US equity funds see largest weekly inflow in eight months