Dec 6 (Reuters) - U.S. investors snapped up equity funds

for a fifth successive week through Nov. 4, motivated by a rally

in Wall Street's main indexes, optimism for strong economic

growth, and expectations of a third consecutive Federal Reserve

rate cut this month.

According to LSEG data, investors acquired U.S. equity funds

worth $8.85 billion on a net basis during the week after about

$11.8 billion worth of net purchases in the previous week.

U.S. economic activity has expanded slightly in most regions

since early October, the Fed said earlier this week.

Market participants are also gearing up for a potential rate

cut later this month, with the CME Fed Watch tool currently

indicating a 66.7% likelihood of a quarter-point reduction.

The monthly payrolls report, due later on Friday, could sway

the Fed's decision.

U.S. large-cap funds witnessed a robust $6.6 billion worth

of inflows, the largest in three weeks. Investors also racked up

small-cap and multi-cap funds of a net $2.59 billion and $585

million, respectively.

U.S. sectoral funds, meanwhile, experienced a net $321

million worth of outflows, following inflows for three weeks in

a row. Investors ditched tech and healthcare sector funds worth

a noticeable $914 million and $538 million, respectively.

At the same time, weekly net purchases in U.S. bond funds

eased to a six-week low of $3.7 billion during the week.

The short-to-intermediate investment-grade, general domestic

taxable fixed income and municipal debt funds still received a

significant $2.01 billion, $1.36 billion and $1.15 billion worth

of inflows, respectively.

Investors, meanwhile, pumped a hefty $121.34 billion into

U.S. money market funds, the biggest amount in any week since

April 2020.