August 12, 2024

U.S. Investors Shift to Money Market Funds Amid Sell-Off 💰

Amid fears of an economic slowdown, U.S. investors moved $47.48 billion into money market funds in the week ending Aug. 7, the largest weekly inflow since April. At the same time, $7.39 billion was pulled from equities, ending a three-week buying streak.

The sell-off was driven by disappointing U.S. payroll and manufacturing data. Small-cap funds lost $2.42 billion, while financials saw $1.36 billion in outflows. However, large-cap funds attracted $1.68 billion in net purchases. Demand for bond funds cooled, with just $452 million in inflows.

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