$1.9 trillion boost to U.S. equity funds over stimulus relief
As the Biden administration approved of the $1.9 trillion stimulus relief bill, investments into U.S. equity funds surged this week with a purchase of net $15.3 billion from investors as compared to the $944 million last week.
The S&P 500 index and the Dow Jones Industrial Average recorded this week’s high with the energy sector funds enjoying the biggest inflow at $1.1 billion.
The U.S. growth funds witnessed $4.7 billion worth of outflows while U.S. bond funds had an inflow of $1.33 billion in the week, the smallest in nearly a year.
Higher yields lead to increased interest rates, prices start to fall thus hurting the flow of money into growth sectors.
U.S. value funds, attracted an inflow of $6 billion, the highest in at least 2 years. U.S. high-yield bond funds, however, had an outflow of $5.5 billion, the biggest since February 2018.
The data showed that the inflows were mainly focused on shorter-term funds and inflation-protection bond funds, being helped by the fall in weekly jobless claims and tepid inflation data for February.
