Key insights
- U.S. equity funds saw inflows of $1.97 billion in the week to May 27, reversing the previous week's outflows. This was driven by a rally in AI-linked technology stocks, with Nvidia's strong demand for AI chips fueling significant investment into the tech sector. Financial and industrial funds also attracted buyers. Bond funds and money market funds continued to see inflows, indicating a mixed but generally positive sentiment towards U.S. assets, with technology leading the charge.
May 29 (Reuters) - U.S. equity funds drew inflows in the week to May 27 as a rally in AI-linked technology stocks lifted sentiment, though concerns surrounding the U.S.-Iran peace negotiations kept purchases in check.
According to LSEG Lipper data, investors bought a net $1.97 billion of U.S. equity funds, compared with a net $12 billion of selling in the previous week.
Nvidia highlighted robust demand for its flagship AI chips last week, fueling inflows into technology sector funds.
Investors bought a net $2.75 billion of technology sector funds in an eighth successive week of buying. Financial and industrial sector funds also attracted inflows of $987 million and $880 million, respectively.
U.S. bond funds were popular for the sixth successive week, gaining a net $10.62 billion of weekly inflow during the week.
General domestic taxable fixed income funds, short-to-intermediate investment-grade funds, municipal debt funds, and short-to-intermediate government and treasury funds had noticeable inflows at $2.74 billion, $2.38 billion, $2.33 billion and $2.02 billion, respectively.
U.S. money market funds attracted inflows for a second successive week, to the tune of $8.38 billion.
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