U. S. Investors Play It Safe Ahead of Fed Move and Tech Reports

Last week, U. S. investors adopted a cautious stance, significantly reducing their investments in stock funds. This shift came as they awaited the Federal Reserve's interest rate decision and earnings reports from major tech companies.

Key Highlights

• Stock Fund Investments Drop: Investors added only $1. 81 billion to stock funds, a stark contrast to the $9. 65 billion invested the previous week.
• Federal Reserve's Move: The Fed cut rates by 0. 25% as expected but hinted at a possible pause in December unless new data emerges.

Sector-Specific Trends

• Big Company Stocks: Saw inflows of $1. 57 billion.
• Smaller Companies: Mid and small-cap funds experienced outflows of $1. 65 billion and $1. 44 billion, respectively.
• Tech Stocks: Attracted $1. 65 billion, the highest since October 1.
• Financials and Consumer Discretionary: Saw outflows of $662 million and $314 million.

Bond and Money Market Funds

• Bond Funds: Continued to attract investors with $4. 91 billion in inflows, marking the fourth consecutive week of inflows.
• Short-to-Intermediate Investment-Grade Funds: Added $1. 72 billion.
• General Domestic Taxable Fixed Income Funds: Added $1. 47 billion.
• Short-to-Intermediate Government and Treasury Funds: Saw outflows of $1. 23 billion.
• Money Market Funds: Experienced a second week of inflows with $1. 46 billion added, indicating a preference for safer investments amid uncertainty.