financetom
Economy
financetom
/
Economy
/
US equity funds draw weekly inflows on rate cut hopes
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
US equity funds draw weekly inflows on rate cut hopes
Aug 15, 2025 4:51 AM

(Reuters) -U.S. equity funds gained substantial inflows in the week through August 13 as investors reversed a selling stance on hopes of a potential Federal Reserve rate cut in September, while a U.S.-China tariff truce further lifted sentiment.

Investors bought a net $8.77 billion worth of U.S. equity funds during the week, partially offsetting the $13.89 billion in outflows recorded the previous week, LSEG Lipper data showed.

An interim nomination to the Federal Reserve Board last week and a softer consumer price report on Tuesday boosted expectations of a rate cut next month, although Thursday's higher-than-expected producer price inflation tempered some of that optimism.

The large-cap equity funds segments saw a net $4.49 billion worth of purchases, a reversal from approximately $7 billion net sales the prior week. Investors also snapped up $296 million worth of small-cap funds while shedding mid-cap funds to the tune of $472 million.

Among sectoral funds, the tech sector received $3.35 billion, the largest amount for a week in 4-1/2 years as Apple Inc pledged new U.S. investments to avoid potential tariffs on iPhones. In contrast, the communication services and healthcare sectors saw $733 million and $557 million in net outflows respectively.

U.S. bond funds drew a 17th straight weekly inflow, totaling $6.87 billion.

General domestic taxable fixed income funds garnered a net$1.57 billion, the largest amount in six weeks. Short-to-intermediate investment-grade funds, and short-to-intermediate government and treasury funds also experienced a hefty $2.52 billion and $1.7 billion worth of net buying.

Weekly investments in money market funds meanwhile cooled to a net $25.04 billion during the week from a massive $78.85 billion in the previous week.

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Factbox-What to expect in 2024: Forecasts for GDP, inflation and other assets
Factbox-What to expect in 2024: Forecasts for GDP, inflation and other assets
Oct 17, 2024
(Reuters) -The U.S. Federal Reserve finally cut its interest rate by an oversized 50 basis points (bps) in its Sept 17-18 meeting that Chair Jerome Powell said was meant to show policymakers' commitment to sustaining a low unemployment rate now that inflation had eased. In addition to approving the half-percentage-point cut, Fed policymakers projected the benchmark interest rate would fall...
Former FDIC Chief Warns Federal Reserve To 'Not Stir The Pot' With Further Rate Cuts: 'Some Have Called It A Goldilocks Economy, But…'
Former FDIC Chief Warns Federal Reserve To 'Not Stir The Pot' With Further Rate Cuts: 'Some Have Called It A Goldilocks Economy, But…'
Oct 17, 2024
Amid a thriving economy, former United States Federal Deposit Insurance Corporation (FDIC) Chief Sheila Bair has raised alarms over the Federal Reserve’s potential rate cuts. What Happened: Despite the economy showing positive signs such as increasing wages, a strong stock market, and robust job creation, the Federal Reserve, under the leadership of Chair Jerome Powell, is contemplating further rate cuts....
Yellen says high US tariff wall 'deeply misguided', would raise prices
Yellen says high US tariff wall 'deeply misguided', would raise prices
Oct 17, 2024
WASHINGTON (Reuters) - U.S. Treasury Secretary Janet Yellen will say on Thursday that walling off the U.S. economy as proposed by Republican presidential candidate Donald Trump would be deeply misguided, raising prices for American consumers and making U.S. companies less competitive. Yellen, in excerpts of remarks to be delivered on Thursday afternoon to the Council on Foreign Relations in New...
Goldman Sachs expects series of consecutive 25 basis point Fed cuts ahead
Goldman Sachs expects series of consecutive 25 basis point Fed cuts ahead
Oct 17, 2024
(Reuters) - Goldman Sachs said on Wednesday it expects the U.S. Federal Reserve to deliver consecutive 25-basis-point (bps) interest rate cuts from November 2024 through June 2025 to a terminal rate range of 3.25-3.5%. Last month, the U.S. central bank cut the overnight rate by half a percentage point, citing greater confidence that inflation will keep receding to its 2%...
Copyright 2023-2026 - www.financetom.com All Rights Reserved