Equity Funds See Net Outflows Amid Record Market Rally
US equity funds saw net outflows of $1.58 billion in the week ending August 5, as investors took profits after a record-setting market rally and awaited Friday's July jobs report.
The S&P 500 rebounded about 6.5% from last week's low to reach a record high of 7,793.68 on Wednesday, buoyed by strong results from companies including Amazon, Caterpillar, and Palantir Technologies.
Investors are awaiting the Labor Department's July employment report for clues on interest-rate expectations. Economists expect payrolls to have risen by 80,000 in July after a 57,000 gain in June, while unemployment is forecast to hold at 4.2%.
In contrast, US bond funds attracted net weekly inflows of $6.52 billion, with demand strengthening after $1.26 billion in net inflows the previous week. Money market funds also saw renewed interest, attracting $55.69 billion in inflows after three consecutive weeks of outflows.