July 10 (Reuters) – U.S. equity funds attracted their largest weekly inflow in three weeks in the week to July 8, as upbeat earnings expectations for the technology sector and easing concerns over Federal Reserve rate hikes bolstered demand.
Investors poured a net $24.97 billion into U.S. equity funds in their largest weekly net purchase since June 17, LSEG Lipper data showed.
Upbeat earnings expectations for the technology sector ahead of the second-quarter reporting season boosted demand. Analysts forecast average year-on-year earnings growth of 40.8% for U.S. large- and mid-cap technology firms, LSEG data showed.
Strong demand for AI products has prompted analysts to raise their average 12-month earnings estimates for the technology sector by 4.2% over the past month, according to LSEG data.
Investors pumped a net $9.71 billion into technology sector funds, marking their largest weekly net purchase since June 16. Financials and consumer staples funds also drew inflows of $1.04 billion and $683 million, respectively.
By market capitalization, U.S. large-cap and small-cap funds attracted weekly inflows of $10.71 billion and $1.87 billion, respectively, while mid-cap funds saw net outflows of $692 million.
Bond funds also saw a surge in demand, attracting $16.82 billion in the week, their largest weekly inflow since at least 2019.
Short-to-intermediate investment-grade funds, general domestic taxable fixed income funds and municipal debt funds drew significant inflows of $5.87 billion, $2.87 billion and $1.38 billion, respectively.
Meanwhile, investors added a net $3.91 billion to money market funds, marking a second successive weekly net purchase.
(Reporting by Gaurav Dogra; Editing by Andrea Ricci )
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