Stock market investors deposited a record amount into US equity and exchange-traded funds over the past week, as the Dow Jones Industrial Average hit a new milestone and the S&P 500 index also hit a record.
BofA Global Research said Friday that US equity inflows hit a weekly record high of $ 56.76 billion in the week ending March 17, up from $ 16.83 billion a week earlier. The Dow DJIA,
on March 17th closed above 33,000 for the first time, as the S&P 500 SPX,
also ended at a record high.
Read: Dow scores the fastest 1,000 point move in history as it hits the 33,000 milestone – here’s what took it there
BOFA Worldwide research
Meanwhile, Goldman Sachs estimated that net flows into global equity funds hit a nominal high of $ 68 billion in the week ending March 17, which, when scaled up to the level of mutual fund assets, was the largest since December 2014.
The increase was largely due to increased net inflows into the U.S. market, coinciding with the initial distribution of incentive vouchers of up to $ 1,400 to qualified U.S. citizens as part of the $ 1.9 trillion COVID-19 aid package previously launched by President Joe Biden was signed. This month, Goldman Sachs analysts said in a note on Friday.
Through March 17, the Treasury had distributed $ 242 billion in incentive checks, or about 60% of the expected total.
“These payments find their way into mutual funds and ETFs, as well as other assets,” Goldman analysts wrote. “All industry categories had a positive net inflow during the week; the largest net purchases as a share of [asssets under management] were from industry and telecom.
Surveys have tried to gauge how many of the stimulus controls would likely make their way into the market, including through individual stock purchases and purchases of other assets, including bitcoin.
See: Americans Ready to Put $ 40 Billion Into Bitcoin & The Stock Market When Stimulus Checks Arrive: Survey
Both the S&P 500 and Dow pulled out of Wednesday’s records as an ongoing sell-off in the Treasury market pushed up returns on the 10-year US Treasury bond TMUBMUSD10Y.
to a 14-month high above 1.75% on Thursday.
BofA said government bond fund inflows weakened from $ 1.18 billion last week to just $ 60 million amid still high interest rate volatility, while municipalities and mortgages saw inflows of $ 1.09 billion and $ 300, respectively. million, not far from the $ 990 million and $ 470 million we saw. a week earlier.