US equity funds post second weekly inflow as AI optimism tempers yield concerns
SPY•US equity funds attracted $20.6 billion in net purchases in the week through September 30, their second consecutive weekly inflow, compared with $37.49 billion the prior week. US bond funds drew $6.45 billion, while money market funds had $41.36 billion in outflows.
1. Equity fund flows
Investors made net purchases of $20.6 billion in US equity funds in the week through September 30. Large-cap funds attracted $19.33 billion, their second-largest weekly inflow in the past quarter; multi-cap funds drew $1.01 billion and small-cap funds $223 million, while mid-cap funds saw $329 million in outflows.
2. AI and inflation
Continued enthusiasm for artificial intelligence and a cooler-than-expected inflation reading tempered concerns over rising Treasury yields. The Nasdaq Composite reached record highs last week, and Micron forecast revenue above estimates on Wednesday, signaling strong appetite for AI memory chips. A Commerce Department report showed inflation rose less than expected in August and July price pressures were more moderate than initially reported.
3. Bond and cash funds
Sectoral equity funds had $4.1 billion in net outflows, including $3.79 billion from technology funds and $738 million from industrials. US bond funds drew $6.45 billion, their largest inflow in three weeks, while money market funds posted $41.36 billion in outflows, their third week of net redemptions in the past four weeks.
