Investors piled into tech stocks, while distancing themselves from the broader equity market, according to a weekly fund flow report from Bank of America Corp.
(Bloomberg) — Investors piled into tech stocks, while distancing themselves from the broader equity market, according to a weekly fund flow report from Bank of America Corp.
Tech funds attracted $1.8 billion in the week to July 19, pulling in money for the fourth consecutive week, and posting “strong inflows” over the past eight weeks, strategist Michael Hartnett said in a note on Thursday, citing EPFR Global data.
The inflows carried on even as Nasdaq Inc. announced a special rebalancing of the flagship Nasdaq 100 Index to reduce the dominance of megacaps. Effective Monday, the rejig aims to boost the presence of smaller members.
However, after gaining more than 40% since the start of the year, the Nasdaq 100 is having a volatile week, as disappointing results from Tesla Inc. and Netflix Inc. hammered their shares. That pushed the index 2.3% lower Thursday, wiping out more than $400 billion in what was its biggest drop since February.
In the broader equity space, investors pulled out $2.1 billion from global funds after three weeks of inflows. They pumped $7.5 billion into cash and $1.4 billion to bonds, the BofA note showed.
Other highlights from the note:
- US equity funds see outflows resume at $2.3 billion, after two consecutive weeks of inflows
- Treasuries had their smallest inflows of the past 13 weeks at $600 million
- European equity funds see redemptions for an 19th week at $1.6 billion
- Japanese equity funds attracted $600 million, a 7th week of inflows, the longest streak since January
- Energy stock funds had their 1st inflow in the past 14 weeks at $500 million
–With assistance from Thyagaraju Adinarayan.
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