November 15, 20246:54 AM PST

By Reuters

Updated 3 days ago

Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., August 8, 2024. REUTERS/Brendan McDermid/File Photo Purchase Licensing Rights, opens new tab
Nov 15 (Reuters) – U.S. equity funds witnessed a significant boost in investor demand in the week through Nov. 13, fueled by optimism that Donald Trump’s return to office would enhance the outlook for U.S. corporate earnings.

According to LSEG data, investors acquired a massive $37.37 billion worth of U.S. equity funds in their largest weekly net purchase since at least January 2014.

Weekly flows into US equity, bond and money market funds in $ million
Weekly flows into US equity, bond and money market funds in $ million
Investors expect that Trump’s policies would boost the U.S. corporate sector with lower taxes, more lenient regulation and consolidation across industries through mergers and acquisitions.

The small-cap equity funds segment saw robust demand, securing the largest weekly inflow in four months at $7.43 billion net. Meanwhile, the large-cap segment attracted $18.89 billion, the most in six weeks, with multi-cap and mid-cap funds receiving net additions of $2.66 billion and $633 million, respectively.

Investors pumped $4.42 billion into financial sector funds, the biggest amount in at least a decade. Industrials and consumer discretionary also drew $1.28 billion and $453 million worth of inflows, respectively.

Weekly flows into US equity sector funds in $ million
U.S. bond funds continued to attract strong demand, drawing in $5.71 billion in net purchases for the 24th consecutive week. General domestic taxable fixed income funds and loan participation funds saw significant inflows, receiving $2.5 billion and $2.15 billion respectively.
Weekly flows into US bond funds in $ million
Investors, meanwhile, snapped up $76.56 billion worth of money market funds, extending net purchases into a second straight week.
Get a look at the day ahead in U.S. and global markets with the Morning Bid U.S. newsletter. Reporting by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru; Editing by Alex Richardson

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