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Investing.com -- U.S. equity funds experienced an inflow for the first time in three weeks in the seven-day period ending February 19. This change was driven by reduced inflation worries and robust fourth-quarter corporate earnings, which increased risk appetite among investors.
During this week, investors purchased a net $1.59 billion worth of U.S. equity funds. This marks only the second weekly net purchase in seven weeks, as per data from LSEG Lipper.
The S&P 500 index reached an all-time high of 6147.45 on Wednesday, powered by a positive corporate earnings forecast and solid results from the majority of its constituents. Approximately 76% of S&P 500 companies reported better-than-expected fourth-quarter earnings, as indicated by LSEG data for about 85% of these companies.
U.S. multi-cap equity funds recorded a net $1.66 billion in purchases, marking the largest weekly inflow since November 20. Large-cap funds also saw a net inflow of $877 million. Conversely, small- and mid-cap funds experienced net outflows of $1.62 billion and $718 million, respectively.
For the second week in a row, sectoral funds faced outflows, with investors withdrawing from consumer discretionary and healthcare funds. These sectors saw net outflows of $792 million and $593 million, respectively.
Bond funds remained attractive for the seventh week in a row, with a net inflow of $8.62 billion. General domestic taxable fixed income funds recorded $2.14 billion in net purchases, marking the seventh consecutive week of inflows.
Investors also showed interest in short-to-intermediate government and treasury funds, short-to-intermediate investment-grade funds, and loan participation funds. These categories saw net inflows of $1.77 billion, $1.68 billion, and $1.6 billion, respectively.
Meanwhile, U.S. money market funds experienced a net sale of $14.11 billion, marking the third weekly outflow in the past four weeks.
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