Buy the dip? Bank of America: Clients' inflows into U.S. stocks last week saw the largest weekly increase since 2017
Bank of America clients injected $10 billion into the U.S. stock market last week, marking the largest single-week increase since 2017, despite it being the worst-performing week for the U.S. stock market. Institutional clients have been net buyers for three consecutive weeks, while retail clients have also been net buyers for two weeks in a row, whereas hedge funds have been net sellers for two consecutive weeks. Client purchasing activity was most active in the information technology and communication services sectors, while there was an outflow of funds in healthcare and consumer discretionary
Zhitong Finance learned that last week was the worst week for the U.S. stock market in over a month. This was preceded by the Federal Reserve testing the reality, but the stock market sell-off did not diminish Bank of America's clients' interest in the U.S. stock market. Bank of America's global research team stated on Tuesday that its clients injected $10 billion into the U.S. stock market last week, marking the second-largest inflow since 2008 and the largest inflow since January 2017. The bank's clients purchased both individual stocks and exchange-traded funds (ETFs).
When breaking down by client type, Bank of America noted that institutional clients were net buyers for the third consecutive week, while retail clients were net buyers for the second consecutive week. In contrast, hedge fund clients were net sellers for the second consecutive week.
In terms of stock purchases by sector, Bank of America's clients were net buyers in 6 of the 11 sectors of the S&P 500, with the most buying activity in information technology and communication services. On the other hand, the healthcare and consumer discretionary sectors experienced the most significant weekly outflows.
Regarding ETFs, Bank of America's clients purchased stocks from 8 sectors of the S&P index, with buying activity led by industrial and information technology funds. Conversely, the largest outflows were seen in financials and real estate