(Reuters) -U.S. equity funds saw renewed demand in the week to October 15 as signals of further rate cuts from Federal Reserve Chair Jerome Powell and a solid start to the corporate earnings season eased concerns over trade tariffs and a government shutdown.
LSEG data showed investors purchased a net $1.04 billion in U.S. equity funds, recouping nearly a quarter of the previous week’s $4.45 billion in outflows.
Stronger-than-expected quarterly results from Morgan Stanley and Bank of America also helped bolster risk sentiment following a week of withdrawals.
Investors pumped about $4.39 billion into U.S. sectoral funds, extending purchases into these funds to a fourth straight week.
They bought tech and financial sector funds of a notable of $1.18 billion and $920 million, respectively.
U.S. large-cap and small-cap fund segments, however, saw $2.42 billion and $114 million weekly outflows, while mid-cap funds saw a net $495 million weekly inflow.
Money market funds witnessed a net $20.98 billion outflow during the week that concluded a three-week trend of net inflows.
U.S. bond funds received a second successive weekly inflow to the tune of $6.49 billion.
Short-to-intermediate investment-grade funds, short-to-intermediate government and treasury funds and municipal debt funds stood out as these funds received inflows of $2.13 billion, $890 million and $678 million, respectively.
(Reporting by Gaurav Dogra; Editing by Leroy Leo)
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