U.S. equity funds welcomed fresh investment dollars during the week ending July 1, as a combination of reduced U.S.-Iran tensions and renewed appetite for technology stocks boosted investor confidence — though caution ahead of an important jobs report kept overall buying in check.
According to LSEG Lipper data, investors directed a net $1.03 billion into U.S. equity funds for the week, partially making up for the $3.47 billion in net withdrawals recorded the week before.
A June employment report that came in below expectations — showing the economy created just 57,000 jobs last month — eased pressure on the Federal Reserve to raise interest rates before year’s end.
Technology sector funds were a standout, pulling in $3.42 billion as investor sentiment improved after the previous week saw a massive $19.97 billion in net sales from that sector. Financial and healthcare funds also attracted fresh capital, drawing $1.96 billion and $1.47 billion, respectively.
Not all fund categories fared well, however. U.S. small-cap funds saw $694 million in outflows, mid-cap funds lost $2.1 billion, and equity income funds shed $1.33 billion. Large-cap funds bucked that trend, pulling in $7.2 billion for the week.
U.S. bond funds continued their strong run, attracting a net $9.88 billion and extending their consecutive weekly inflow streak to eleven weeks. Short-to-intermediate investment-grade funds brought in $4.22 billion, while general domestic taxable fixed income funds added $3.53 billion. Short-to-intermediate government and Treasury funds moved in the opposite direction, recording $2.1 billion in outflows.
Investors also moved $47.82 billion into money market funds — the largest single-week allocation in the past four weeks.
