Flows into U.S. equity funds slowed markedly in the week ending April 29, with investors adding just $911 million to those funds, according to LSEG Lipper. That level represents the smallest weekly net purchase since the week of March 18.
Market participants cited rising crude oil prices and the timing of a Federal Reserve policy decision as factors that encouraged a more cautious approach to equity allocations. The Fed left interest rates unchanged in its recent meeting, but the vote included three board members who supported removing the central bank's easing bias, introducing additional uncertainty about the path of monetary policy.
Despite the pullback in net equity inflows, the S&P 500 reached a record intraday high of 7,272.52 last Friday, supported by stronger-than-expected earnings from several large U.S. technology companies. Technology funds received $1.43 billion in net purchases, extending a streak of net inflows into a fourth consecutive week.
Not all equity sectors saw demand. Healthcare funds recorded net redemptions of $1.06 billion in the same period.
Fixed income funds registered a notable increase in investor demand. Aggregate inflows to U.S. bond funds rose to $4.87 billion for the week, up from approximately $3.41 billion the prior week. Within the bond space, U.S. government bond funds attracted $2.73 billion, high yield bond funds saw $1.97 billion in net inflows, and short-to-intermediate investment-grade funds drew $1.48 billion.
Money market funds diverged from the bond trend, experiencing their third straight weekly outflow, with investors withdrawing $13.02 billion.
The data paint a mixed picture: equities drew smaller net purchases overall even as large-cap U.S. technology continued to benefit from earnings momentum, while bond funds gained traction at the same time that money market balances contracted.
Market context and investor behavior
Rising oil prices and a Fed decision that kept rates steady but reduced clarity on future policy moves were cited as immediate drivers for the reduced equity inflows. Within asset classes, tech demand persisted, healthcare saw outflows, bonds experienced broader inflows across government, high yield and investment-grade short-to-intermediate maturities, and money market funds continued to lose cash.