US equity funds draw big inflows on bank earnings, rate cut hopes

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Oct 18 - U.S. investors made large investments in equity funds in the week to Oct. 16, buoyed by strong third-quarter earnings from U.S. lenders and optimism over a potential Federal Reserve rate cut in November and signs of cooling inflation.

Strong earnings reports from mega-cap banks including Morgan Stanley , opens new tab, JP Morgan Chase , opens new tab and Goldman Sachs , opens new tab boosted investor sentiment, driving Wall Street's major indexes to records this week. By segment, investors racked up a net $15.25 billion of large-cap funds, a sharp rebound from $4.25 billion in net sales during the previous week. Mid-cap, multi-cap, and small-cap funds witnessed $1.49 billion, $617 million and $473 million worth of inflows.Investors scooped up U.S. general domestic taxable, short-to-intermediate investment-grade, and municipal debt funds worth a remarkable $2.12 billion, $2.04 billion and $1.72 billion, respectively.

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