U.S. Equity Funds See Positive Inflows Amid Trade Optimism

For the first time in five weeks, U.S. equity funds attracted inflows, totaling $12.86 billion, driven by optimism over tariff resolution talks. Large-cap funds led with $5.06 billion in inflows. In contrast, U.S. money market funds experienced net outflows, signaling a shift in investor sentiment.

In a significant shift, U.S. equity funds attracted $12.86 billion in inflows for the first time in five weeks. This surge, recorded through May 14, is attributed to renewed investor optimism over the progress in U.S.-China tariff negotiations and reduced concern over rising consumer prices, as indicated by LSEG Lipper data.

The recent 90-day tariff truce between the U.S. and China has bolstered investor confidence, with expectations that Washington will work towards reducing existing tariffs. Additionally, April’s softer-than-anticipated U.S. consumer inflation data has alleviated fears related to tariff-induced price hikes.

Large-cap U.S. equity funds saw a net inflow of $5.06 billion, partially reversing the previous week's outflows. Small-cap funds attracted $1.05 billion, even as mid-cap funds suffered $650 million in outflows. Sector-specific equity funds also performed well, particularly in the financial, industrial, and healthcare sectors, garnering significant investor interest.