Investors moved substantial amounts of money out of cash holdings and into stocks and bonds last week, seeking to capitalise on recent market volatility, according to BofA Global Research. Stock funds recorded $64.5 billion in inflows in the week ending Wednesday, based on EPFR data. Technology stocks attracted $10.7 billion, taking their year-to-date inflows to a record $196 billion. US equity funds also saw strong demand, with $39.1 billion in weekly inflows and a record $636 billion since the beginning of the year.
Bond funds attracted $11.8 billion during the week, reflecting renewed investor interest following months of selling pressure. US Treasury funds recorded $3.6 billion in inflows, extending their streak to 16 consecutive weeks, the longest since August 2024. The shift came as government bonds rallied sharply on Thursday, pushing the yield on the 10-year US Treasury down by 10 basis points. Meanwhile, the Nasdaq fell 1.8% on the same day, highlighting continued volatility in technology stocks. Money market funds, which serve as cash-like investments, experienced outflows of $53.1 billion.
Emerging markets also attracted significant investor interest, recording $17.7 billion in inflows, including $8.6 billion directed towards China. Brazil registered a record $4.7 billion in inflows over the past two weeks, amid political developments following the country’s first-round presidential election. Right-wing Senator Flavio Bolsonaro performed better than expected and is set to face incumbent left-wing President Luiz Inacio Lula da Silva in a runoff. The latest fund-flow data highlights investors’ willingness to deploy cash across global markets despite uncertainty, as they seek opportunities in equities, government bonds and emerging economies.
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