The softer than anticipated US payrolls report stoked hopes of an interest rate cut by the Federal Reserve this year, injecting fresh life into US equity funds. According to a report by Reuters, US equity funds recorded their first inflow in six weeks, drawing a net $1.14 billion during the seven days up until May 8. The data from the Labour Department demonstrated a slower than expected job growth in April, further bolstering hopes of a Fed rate cut later in the year. Sector-wise, small-cap funds received a robust $2.14 billion, marking an end to three weeks’ worth of outflows. Meanwhile, on the investment front, real estate and technology sector funds saw $1.08 billion worth of outflows during the week. The net purchases of the US bond funds peaked at $8.16 billion, the largest amount since March 6.
Weekly Inflows Boost US Stock Funds as Rate Cut Optimism Returns
