US investors were net buyers of equity funds for a second straight week through August 19, pulling in a net $11.72 billion — the largest weekly inflow since July 29 — even as a bond-market selloff and rising oil prices weighed on broader market sentiment, according to LSEG Lipper data cited by Reuters.
Earnings Strength Fuels Investor Confidence
The inflows came against a backdrop of a strong corporate earnings season and cooler inflation data. About 85% of the 468 S&P 500 companies that had reported results by the time of the survey beat average analyst estimates, according to LSEG data. Investor enthusiasm was further boosted earlier in the week by Anthropic's projection of strong revenue growth, which added to the generally upbeat tone around corporate performance even as broader macro headwinds built.
Where the Money Went
Large-cap equity funds drew the bulk of the inflows, pulling in $9.58 billion, while multi-cap funds attracted a more modest $1.36 billion. Mid-cap and small-cap funds moved in the opposite direction, recording outflows of $809 million and $70 million respectively — suggesting investors leaned toward larger, more established companies rather than smaller, higher-risk names during the week. Sectoral funds saw a mixed picture: investors pulled a net $3.1 billion from US sectoral funds overall, withdrawing $1.87 billion from financial funds, $623 million from consumer staples funds, and $444 million from industrial funds, while still adding $287 million into technology funds.
Bond Funds Also Posted Strong Gains
Fixed-income funds weren't left behind either: US bond funds attracted net inflows of $9.92 billion during the week, their largest weekly total since July 15. Investors bought $2.63 billion of general domestic taxable fixed-income funds and $1.93 billion each of short-to-intermediate investment-grade and municipal bond funds — indicating broad-based demand across both stocks and bonds even as yields climbed.
Despite the Inflows, Stocks Still Fell
The strong fund flows came even as major US indexes closed lower for the week. The Dow Jones Industrial Average, S&P 500, and Nasdaq Composite fell 1.32%, 0.87%, and 1.00% respectively on Thursday alone, as rising Treasury yields and a rally in crude oil prices dented risk appetite. That divergence — steady fund inflows alongside falling index levels — illustrates how investors continued allocating fresh capital to equities even as day-to-day price action reflected growing anxiety over bond yields and energy costs.
All Eyes on Nvidia Next Week
Looking ahead, investors are turning their attention to Nvidia's upcoming earnings report, widely seen as a key barometer for continued demand in AI infrastructure and data-center spending. Given how central AI-related capital expenditure has been to this year's market narrative, Nvidia's results are expected to significantly shape sentiment heading into the final weeks of August.
The Bigger Picture on Global Flows
The US inflow figure fits into a broader pattern of continued investor appetite for equities globally, even amid periodic bouts of volatility tied to bond yields, oil prices, and geopolitical uncertainty tied to the ongoing Strait of Hormuz standoff. With roughly 90% of MSCI World Index companies having reported second-quarter results showing combined net income up nearly 40% year-over-year, the earnings backdrop has remained a persistent source of support for equity markets even when other macro indicators point toward caution.
What to Watch Next
With Nvidia's results due next week and Treasury yields still elevated near multiyear highs, fund flow data in the coming weeks will offer an important signal on whether investors continue rotating into equities despite bond market pressure, or whether rising yields eventually prompt a more defensive shift. For continuing fund flow data, see LSEG Lipper's fund flow reports.
For now, the message from fund flows is clear: even with bond yields climbing and oil prices rising, investors are still choosing to bet on stocks — a vote of confidence that will be put to a fresh test when Nvidia reports next week.