Story
Bank of America Clients End 5-Week Equity Selling Streak with $4 Billion Inflow
Summary
Bank of America clients became net buyers of U.S. equities for the first time in five weeks, purchasing a net $4 billion in the week ending July 3. The shift was primarily driven by strong buying from hedge funds, which have now been net buyers for four consecutive weeks.
Clients of Bank of America reversed a month-long trend of selling, purchasing a net $4 billion in U.S. equities for the week ending July 3. This marked the first week of net inflows after five consecutive weeks of outflows. The buying was split between $3.1 billion in single stocks, the largest such inflow since March, and $1.0 billion in equity ETFs.
The purchasing activity was led by hedge fund clients, who have now been net buyers for four straight weeks. According to the report, the four-week average net flow from hedge funds is at an all-time high in the bank's data history, which dates back to 2008. Institutional and retail clients also contributed as net buyers during the week.
Sector-level data showed significant inflows into Consumer Discretionary stocks, which posted the largest single-stock inflow in the bank's records. Technology and Health Care stocks also saw renewed buying after several weeks of outflows. In contrast, the Financials sector experienced the largest outflows, extending its selling streak to seven consecutive weeks, while Energy and Utilities also continued to see net selling.
AdDespite the strong weekly buying, corporate buybacks slowed for the sixth week in a row, falling to their lowest level since February. In the ETF market, clients favored large-cap and blend funds, with Financials ETFs attracting the largest inflows, a notable contrast to the outflows from individual financial stocks. Bank of America noted that despite last week's reversal, all three client groups remain net sellers of equities over the past 12 months.