U.S. equity funds draw first weekly inflow in three weeks ahead of Fed easing

U.S. investors bought equity funds for the first time in three weeks in the week through December 10 in anticipation of a policy rate cut by the Federal Reserve on Wednesday.

They purchased a net $3.3 billion worth of U.S. equity funds during the week, closely reversing a net $3.52 billion outflow the prior week, LSEG Lipper data showed.

Investors, however, remained concerned over a slower pace of profitability for artificial intelligence companies as earnings guidance from Oracle ORCL missed market expectations on Wednesday.

U.S. equity sectoral funds received a net $2.81 billion, the largest weekly inflow since a $4.03 billion net purchase in the week to October 22.

Metals and mining, industrials and healthcare funds saw weekly inflows to the tune of $672 million, $548 million and $527 million, respectively.

U.S. bond funds witnessed $3.49 billion weekly net purchase, significantly higher than the previous week’s $291 million net inflows.

Investors pumped $2.61 billion into short-to-intermediate investment-grade funds, the largest amount in seven weeks. They, however, shed general domestic taxable fixed income funds of $902 million.

Money market funds, meanwhile, had a net $4.58 billion weekly outflow following a robust $105.03 billion weekly net purchase the prior week.