U.S. investors' appetite for risk-taking renewed in the week ending Wednesday, with U.S.-based stock funds attracting $20.4 billion, the largest inflows since late January, according to Lipper data on Thursday.
U.S.-based taxable bond funds also had their largest inflows since late January, attracting $3.2 billion over the weekly period, the research service's data showed. But it was technology and financial-banking stocks that stole the spotlight this week.
U.S.-based technology sector stock funds attracted $2 billion over the weekly period, the largest inflows since the year 2000's tech mania. U.S.-based financial-banking sector stock funds posted their fourth consecutive week of inflows, Lipper said.
"It was a 'Goldilocks' kind of week for investors," said Tom Roseen, head of research services at Thomson Reuters Lipper.
"Investors are feeling good because of the fantastic jobs report with inflation readings showing signs that things are not too out-of-control. Investors are not concerned about the Federal Reserve rate hikes, so long as the Fed moves in a slow and steady fashion."
Financial-banking sector stock funds posted inflows of $692 million, as enthusiasm over the possibility of a changing financial regulatory framework might take hold. The Senate this week is working to complete consideration of changes to the Dodd-Frank Financial Regulatory Reform Bill that could give some regulatory relief to small and mid-sized banks.
"The steady rise in rates helps financials but also the Dodd-Frank news is beneficial too," Roseen said. U.S.-based corporate investment-grade bond funds attracted $2.3 billion over the weekly period, the largest inflows in 5 weeks, Lipper said.
U.S.-based domestic-fund stock funds attracted $17.5 billion over the weekly period, the largest inflows since the week ended Jan. 24, Lipper said. U.S.-based non-domestic-focused stock funds attracted $3 billion over the weekly period, extending an unbroken streak of inflows for 2018, Lipper said.
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