GRAPHIC-US equity fund inflows ease as tech selloff weighs

Reuters
Feb 06
GRAPHIC-US equity fund inflows ease as tech selloff weighs

Feb 6 (Reuters) - U.S. equity funds witnessed an easing of demand in the week through February 4 on caution over a selloff in software stocks, although strong earnings from Eli Lilly and Super Micro Computer offered some support.

Investors bought U.S. equity funds of $5.58 billion during the week, approximately a 48% drop compared with the prior week's $10.82 billion net inflows, LSEG Lipper data showed.

Software shares came under pressure after AI developer Anthropic launched a legal plug-in for its generative AI chatbot last Friday, raising concerns over potential disruption to the sector.

U.S. large-cap funds saw $1.1 billion worth of inflows, while mid-cap and small-cap funds faced outflows of $1.59 billion and $1.67 billion, respectively.

Among sectoral funds, investors poured $2.11 billion into industrials and $1.44 billion into metals and mining but withdrew a sharp $2.34 billion from the technology sector.

U.S. bond funds attracted a fifth successive weekly inflow, to the tune of $11.11 billion in the most recent week.

Short-to-intermediate investment-grade funds saw $6.34 billion worth of net investments, the largest for a week since at least 2022.

Municipal debt funds and inflation-protected funds also drew a significant $2.38 billion and $1.34 billion, respectively.

U.S. money market funds, meanwhile, experienced $83.09 billion worth of net purchases, the largest since a $105.08 billion net inflow in the week to December 3.

Fund flows: U.S. domiciled equities, bonds and money market funds https://reut.rs/45ZWQop

Fund flows: U.S. equity sector funds https://reut.rs/4g5IVAe

Fund flows: U.S. bond funds https://reut.rs/4g6F461

(Reporting by Gaurav Dogra; Editing by Sahal Muhammed)

((gaurav.dogra@thomsonreuters.com; +91(080) 67496197;))

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