July 31 (Reuters) - U.S. equity funds drew inflows in the

week to July 29, snapping a two-week streak of outflows, as

investors added exposure to mega-cap technology funds during a

recent selloff on bets that the market rally could continue.

Investors bought a net $11.83 billion in U.S. equity funds,

more than reversing the combined $10.68 billion in outflows

recorded over the previous two weeks, according to LSEG Lipper

data.

After last week's results from Alphabet and Tesla

, which showed negative cash flows and weighed on the

technology sector, strong earnings from Microsoft ( MSFT ) and

Amazon ( AMZN ) on Thursday eased concerns over heavy capital

spending and lifted the S&P 500 1.66%.

"Microsoft ( MSFT ) indicated further acceleration in cloud revenue

growth for the current quarter, while Alphabet reported an

increase in advanced cloud orders that have yet to be recorded

as revenue," said Mark Haefele, chief investment officer at UBS

Global Wealth Management.

"We remain constructive on the AI growth story."

Investors bought a net $11.57 billion in U.S. large-cap

funds, marking their largest weekly net purchase since June 24.

Mid-cap and small-cap funds, however, saw outflows of $2.29

billion and $196 million, respectively.

Technology-sector funds attracted $4.9 billion, their

largest weekly inflow since July 8. Financials and consumer

staples also recorded net purchases of $1.96 billion and $751

million, respectively.

Meanwhile, inflows into U.S. bond funds slowed to a 15-week

low of $1.34 billion during the week.

Net purchases of short-to-intermediate government and

Treasury funds, as well as short-to-intermediate

investment-grade funds, eased to $865 million and $1.08 billion,

respectively, from $1.32 billion and $1.54 billion in the

previous week.

Investors withdrew $466 million from general domestic

taxable fixed-income funds but bought a net $761 million in

municipal debt funds.

Money market funds recorded net outflows of $11 billion for

a third consecutive week.