(Reuters) - U.S. investors continued to pump money into equity funds in the seven days to July 24, shrugging off a technology sector selloff to focus on robust corporate earnings and the possibility of upcoming Federal Reserve interest rate cuts.
According to LSEG data, investors acquired U.S. equity funds worth a net $5.7 billion during the week, following $21.7 billion worth of net purchases in the prior week.
Companies including Coca-Cola (NYSE:KO), Spotify Technology and AT&T (NYSE:T) reported upbeat results, with the second quarter earnings season well underway. Of the 201 S&P 500 companies that have reported earnings so far, 79% beat the consensus net income estimates, LSEG data showed.
Megacap tech names - Tesla (NASDAQ:TSLA) and Alphabet-, however, reported lacklustre earnings, extending the slump in technology stocks into a second week.
U.S. large-cap funds attracted $9.1 billion in net inflows, down slightly from $10.34 billion the previous week, according to recent data. Meanwhile, multi-cap funds saw inflows of $136 million, contrasting with mid-cap funds which experienced outflows of $684 million.
U.S. small-cap funds, meanwhile, drew just $84 million in comparison to $8.67 billion worth of net purchases a week ago.
Investors, however, sold $1.52 billion worth of sectoral funds as they exited tech, industrials and metals & mining funds to the tune of $1.2 billion, $540 million and $533 million, respectively. Conversely, financials gained $911 million in inflows.
U.S. bond funds garnered $5.05 billion of inflows during the week, the eighth week net purchases in a row.
General domestic taxable fixed income funds remained popular for an eighth week as they secured a massive $2.31 billion. Municipal, mortgage funds, and short/intermediate government and treasury funds also saw $887 million, $884 million and $710 million worth of net purchases.
Money market funds, meanwhile, faced $26.56 billion worth of outflows after three weekly net purchases in a row.