July 10 – U.S. equity funds attracted their largest weekly inflow in three weeks as investors increased exposure to stocks ahead of the second-quarter earnings season, encouraged by strong expectations for technology companies and easing concerns over additional Federal Reserve interest rate hikes.
According to LSEG Lipper data, investors invested a net $24.97 billion into U.S. equity funds during the week ending July 8, marking the strongest weekly inflow since mid-June.
Technology-focused funds accounted for the largest share of new investments, attracting $9.71 billion in fresh capital—the biggest weekly inflow into the sector since June 16. Analysts have become increasingly optimistic about the technology industry’s earnings outlook, raising their average 12-month earnings estimates by 4.2% over the past month, driven largely by sustained demand for artificial intelligence products and services.
Market analysts expect U.S. large- and mid-cap technology companies to deliver an average 40.8% year-over-year earnings growth during the second-quarter reporting season, further strengthening investor confidence in the sector.
Outside technology, financial sector funds recorded net inflows of $1.04 billion, while consumer staples funds attracted approximately $683 million, reflecting broader investor interest across defensive and growth-oriented industries.
By market capitalization, large-cap equity funds led the gains with $10.71 billion in net inflows, while small-cap funds received $1.87 billion. In contrast, mid-cap funds experienced net outflows totaling $692 million.
Investor appetite also extended to fixed-income markets. U.S. bond funds attracted $16.82 billion, their largest weekly inflow since at least 2019, as investors continued to seek income opportunities and portfolio stability.
Among bond categories, short-to-intermediate investment-grade funds drew $5.87 billion, general domestic taxable fixed-income funds attracted $2.87 billion, and municipal bond funds recorded inflows of $1.38 billion.
Meanwhile, money market funds received an additional $3.91 billion in net investments, marking the second consecutive week of inflows as investors maintained a balanced approach between risk assets and cash holdings.
The latest fund flow data suggests investor sentiment remains positive heading into earnings season, with expectations that strong technology earnings and a more stable interest rate outlook could continue supporting U.S. financial markets.
