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2025-12-12 20:54:57
[Interest Rate Cut Expectations Strongly Attract Funds, Ending Three-Week Outflow for US Equity Funds] ⑴ Fund flow data shows that in the week ending December 10, US equity funds received a net inflow of $3.3 billion, the first weekly net purchase in three weeks, almost completely reversing the previous week's net outflow of $3.52 billion. ⑵ This return of funds coincides with market expectations of a Federal Reserve interest rate cut, indicating that investors are repositioning themselves in risk assets before the central bank's easing policies are implemented. ⑶ In terms of industry sectors, US equity sector funds saw a net inflow of $2.81 billion, the largest weekly inflow since the week of October 22. The metals and mining, industrial, and healthcare sectors attracted the most significant inflows. ⑷ The bond market also received favorable treatment, with US bond funds seeing a net purchase of $3.49 billion this week, far exceeding the previous week's figure. Investors particularly favored short- to medium-term investment-grade bond funds, injecting $2.61 billion, the largest inflow in seven weeks. (5) Meanwhile, money market funds saw a net outflow of $4.58 billion, a stark contrast to the massive net inflow of $105.03 billion the previous week. (6) Despite the overall return of funds, market sentiment is not entirely optimistic. Investors remain skeptical about the slowdown in earnings guidance from technology companies, particularly Oracle, and especially regarding the investment return cycle in the artificial intelligence sector. This could lead to increased rotation of funds between sectors in the future.
