Key Takeaways
- Retail investors and hedge funds were net buyers of equities last week as major U.S. indexes fell, according to new research.
- Bank of America said its clients bought individual stocks and sold exchange-traded funds.
- The buying was broad-based, with inflows for eight of the S&P 500’s 11 sectors.
Retail investors and hedge funds were net buyers of equities last week as major U.S. indexes fell, according to new research.
Stocks dropped last week, with the benchmark S&P 500 turning in its worst weekly performance in more than a year. Tech stocks, including several high-profile chip shares, were hit particularly hard.
Still, investors largely bought the dip, according to a report released Tuesday by Bank of America that analyzed the moves of its retail and hedge-fund clients. Clients bought individual stocks, pushing them to their highest inflows in nine weeks, and sold exchange-traded funds (ETFs) for a second week.
Broad-Based Buying
The buying was broad-based, with inflows for eight of the S&P 500’s 11 sectors; real estate, industrials, and materials were the exceptions. Tech saw its largest inflows since June.
Stocks are off to a better start this week, with the major indexes rising Monday and making muted moves early Tuesday. Investors this week are largely tuned into the next CPI report, due tomorrow; tonight’s presidential debate; and next week’s Federal Reserve meeting, which could bring an interest-rate cut.