Key facts
- Global equity funds experienced their largest weekly inflow in 19 months, totaling $55.22 billion.
- The surge was driven by optimism over an interim U.S.-Iran deal and the potential reopening of the Strait of Hormuz.
- U.S. equity funds attracted $38.37 billion, marking their strongest week since November 13, 2024.
- Technology sector funds received a record $21.46 billion in investments.
- U.S. bond funds saw inflows of $9.85 billion, extending a streak of demand to nine consecutive weeks.
Global equity funds experienced their largest weekly inflow in approximately 19 months, with investors pouring $55.22 billion into the sector. This surge was primarily attributed to optimism surrounding an interim agreement between the U.S. and Iran aimed at de-escalating tensions and potentially reopening the Strait of Hormuz, a critical global oil supply route.
The agreement extends a ceasefire for an additional 60 days, which is expected to alleviate inflation concerns by ensuring the resumption of maritime traffic. U.S. equity funds saw substantial inflows totaling $38.37 billion, marking their strongest week since November 13, 2024. Technology sector funds were particularly strong, attracting a record $21.46 billion in weekly investments.
Within the U.S. equity market, small-cap, multi-cap, and mid-cap funds attracted significant investments, while large-cap funds experienced outflows. Industrial, financial, and metals and mining sector funds also saw inflows. U.S. bond funds attracted $9.85 billion, marking the ninth consecutive week of demand, led by general domestic taxable fixed income and short-to-intermediate investment-grade funds. Money market funds reversed previous outflows, drawing $53.25 billion.
Conversely, gold and precious metal funds faced outflows for the fifth consecutive week, and emerging market equity funds continued to see selling pressure.