Caution over midterms and AI cash burn drives surge in US money market fund inflows
SPY•SPY•SPY•SPY•US money market funds attracted a net $117.97 billion in the week to November 4, their largest weekly inflow in six months, as investors grew cautious ahead of the midterms and over AI spending and cash burn. US equity funds gained $14.81 billion, while bond funds attracted $7.31 billion.
Investors added a net $117.97 billion to US money market funds in the week to November 4, the largest weekly net investment since May 6. Caution ahead of the US midterm elections and concerns about rising AI spending and cash burn at major technology hyperscalers boosted demand for safe-haven assets.
US equity funds drew $14.81 billion in net inflows, reversing the prior week’s $6.54 billion outflow. Large-cap funds gained $10.35 billion, while mid-cap funds recorded $1.07 billion in outflows. Technology, industrials and communication services funds saw outflows; financials and healthcare attracted $1.3 billion and $1.09 billion, respectively. US bond funds secured $7.31 billion in inflows, their highest in four weeks.
