Stock market investors poured a record amount of money into US mutual funds and US exchange-traded funds last week, while the Dow Jones Industrial Average surpassed another milestone and the S&P 500 index also hit a record high.
BofA Global Research said on Friday that U.S. stock inflows reached a weekly record of $ 56.76 billion for the week ended March 17, a sharp increase from the previous week’s $ 16.83 billion . The Dow DJIA,
on March 17 it closed above 33,000 for the first time, while the S&P 500 SPX,
it also ended at a high point.
Reading: Dow marks the fastest 1,000-point move in history by reaching the 33,000 milestone – here’s what got you there
BOFA Global Research
Meanwhile, Goldman Sachs estimated that net flows to global equity funds reached a record high of $ 68 billion in the week ended March 17, which when scaled to the level of mutual fund assets was the largest since December 2014.
The increase was largely due to greater net inflows into the US market, which coincided with the initial distribution of stimulus checks of up to $ 1,400 to qualified US citizens as part of the $ 1.9 COVID-19 aid package. trillion signed by President Joe Biden earlier this month, Goldman Sachs analysts said in a note on Friday.
As of March 17, the Treasury has distributed $ 242 billion in stimulus checks, or about 60% of the total forecast.
“These payments may be reaching mutual funds and ETFs, as well as other assets,” wrote Goldman analysts. “All industry categories recorded positive net inflows for the week; the largest net purchases as a share of [asssets under management] were from industries and telecommunications.
Research has attempted to assess how much of the stimulus checks would likely reach the market, including through individual stock purchases and purchases of other assets, including bitcoin.
To see: Americans ready to pour $ 40 billion into bitcoin and the stock market with the arrival of stimulus checks: research
Both the S&P 500 and Dow fell from Wednesday’s records, as a continued sale on the Treasury market pushed the yield on the 10-year US Treasury note TMUBMUSD10Y,
to a 14-month high above 1.75% on Thursday.
BofA said government bond fund inflows weakened from $ 1.18 billion to just $ 60 million the week before amid still high rate volatility, while municipalities and mortgages registered $ 1 inflows. , 09 billion and $ 300 million, respectively, not far from the $ 990 million and $ 470 million seen a week earlier.