US equity funds experienced significant inflows this week, drawing $11.72 billion from investors, as reported by Economic Times Markets. This influx comes amid a backdrop of strong revenue forecasts from Anthropic and anticipation of Nvidia's upcoming results, which are expected to provide insights into AI infrastructure demand.
According to LSEG data reported by Reuters, approximately 85% of the 468 S&P 500 companies that have reported earnings have surpassed analyst expectations. This optimism has driven substantial investments into US large-cap equity funds, which attracted $9.58 billion, and multi-cap funds, which received $1.36 billion. However, mid-cap and small-cap funds saw withdrawals of $809 million and $70 million, respectively.
US sector funds faced net outflows of $3.1 billion, with financial funds losing $1.87 billion, consumer staples shedding $623 million, and industrial funds seeing withdrawals of $444 million. In contrast, technology funds managed to attract $287 million.
Bond funds in the US saw net inflows of $9.92 billion during the week, marking their largest weekly total since July 15. Investors allocated $2.63 billion to general domestic taxable fixed-income funds, $1.93 billion to short-to-intermediate investment-grade funds, and $1.93 billion to short-to-intermediate government and Treasury funds.
Money market funds posted net outflows of $3.57 billion, ending a two-week streak of inflows. Meanwhile, major US indexes rose on Friday, with the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite up 0.81%, 0.41%, and 0.35%, respectively.
Background
The recent inflows into equity funds highlight investor confidence in the US market despite the pressure from rising bond yields. The anticipation surrounding Nvidia's results is particularly noteworthy as it could signal future trends in AI and data-center investments.
Looking ahead, investors will be closely monitoring Nvidia's earnings next week for further indications of market direction, particularly in the AI sector. This will be crucial in understanding the broader implications for technology and infrastructure investments.
