July 3 (Reuters) – U.S. equity funds saw renewed inflows in the week to July 1 as easing U.S.-Iran tensions and renewed demand for technology stocks lifted sentiment, though caution ahead of a closely watched payrolls report capped purchases.
Investors bought a net $1.03 billion of U.S. equity funds, partially reversing the previous week’s $3.47 billion in net sales, LSEG Lipper data showed.
A softer than expected June employment report, showing the economy added just 57,000 jobs last month, reduced expectations of a Federal Reserve rate hike by year-end.
Technology sector funds attracted $3.42 billion as sentiment improved following net sales of $19.97 billion the previous week. Financial and healthcare funds also drew inflows of $1.96 billion and $1.47 billion, respectively.
U.S. small-cap, mid-cap and equity income funds, however, posted outflows of $694 million, $2.1 billion and $1.33 billion, respectively. Large-cap funds drew $7.2 billion in weekly inflows.
U.S. bond funds attracted a net $9.88 billion, extending their buying streak to an 11th straight week.
Short-to-intermediate investment-grade funds and general domestic taxable fixed income funds saw notable inflows of $4.22 billion and $3.53 billion, respectively. Short-to-intermediate government and Treasury funds, however, had $2.1 billion in outflows.
Investors also allocated $47.82 billion to money market funds, the largest amount in four weeks.
(Reporting by Gaurav Dogra; Editing by Jan Harvey)
Leave a comment