U.S. equity funds attracted a massive influx of capital in the week through June 17, as optimism over an interim U.S.-Iran deal to end the war and reopen the Strait of Hormuz eased inflation concerns and fueled strong investment in the technology sector.
U.S. equity funds drew a net $38.37 billion in their strongest week since November 13, 2024, with technology sector funds gaining a record $21.46 billion, LSEG Lipper data showed.
The United States and Iran signed an agreement on Wednesday extending a ceasefire announced in April by another 60 days, allowing the two sides to negotiate a permanent truce.
The agreement also provides for the full resumption of maritime traffic “with no charge” through the Strait of Hormuz, an important global oil supply route whose closure during the conflict had driven crude prices sharply higher.
U.S. small-cap, multi-cap and mid-cap funds attracted weekly net investments of $6.52 billion, $5.02 billion and $1.42 billion, respectively, while large-cap funds saw a net outflow of $6.55 billion.
Industrial, financial, and metals and mining sector funds drew inflows of $2.35 billion, $639 million and $586 million, respectively.
U.S. bond funds attracted a net $9.85 billion as demand extended into a ninth successive week.
General domestic taxable fixed income funds and short-to-intermediate investment-grade funds led bond fund flows, with weekly net investments of $3.4 billion and $3.09 billion, respectively.
U.S. money market funds drew $53.25 billion in net purchases, reversing $16.6 billion in net sales in the previous week.
(Reporting by Gaurav Dogra; Editing by Kirsten Donovan)