Breaking News: U.S. Stocks See $33.8 Billion Inflow in Third-Largest Surge of 2024
In the latest report from Bank of America, it has been revealed that U.S. stocks experienced their third-largest inflow of the year, with a whopping $33.8 billion pouring into the asset class last week. The large-cap sector was the standout performer, attracting $26.2 billion, while value stocks saw their largest inflow since December 2023 at $4.2 billion. Small-cap stocks also saw healthy inflows of $3.9 billion, followed by growth stocks with $1.9 billion.
Globally, equity funds saw strong momentum with $38.6 billion flowing in, led by U.S. stocks. Japan also saw a significant inflow of $1.4 billion. Emerging markets continued their positive streak with $1.3 billion, while European equities faced their fourth consecutive week of outflows at $0.8 billion.
On the macroeconomic front, BofA strategists commented on the Federal Reserve's recent interest rate cut, stating that the Fed aims to prevent recessionary impacts on the small business sector by slashing real rates. They predict that the expected 250 basis points in cuts could lead to 15-20% earnings per share growth in 2025, making it an attractive prospect for investors.
Looking ahead, BofA sees international stocks and commodities as the best plays if the Fed successfully orchestrates a "soft landing" for the U.S. economy. These assets are seen as attractively priced and starting to outperform, benefiting from a decrease in geopolitical tensions.
In the bond market, there was a significant $15.5 billion inflow last week, marking the 39th consecutive week of positive flows.
In conclusion, the recent influx of funds into U.S. stocks and global equity funds, coupled with the Federal Reserve's aggressive interest rate cuts, presents exciting opportunities for investors. By keeping an eye on international stocks, commodities, and the bond market, investors can position themselves to benefit from potential growth and market trends.