NASDAQ-Adv: 1,839 Dec: 2,754 NYSE-Adv: 1,511 Dec: 2,650
(Supply: Nasdaq
Buyers put cash into money on the quickest tempo in the beginning of 1 / 4 for the reason that 2020 COVID disaster within the week to Wednesday, as heightened volatility and questions over the U.S. price outlook triggered a safe-haven sprint, BofA World Analysis stated on Friday.
Money funds noticed inflows of $62.1 billion within the newest week, reflecting investor demand for {dollars}, which in flip noticed the nineteenth straight week of outflows from gold funds – the longest string of outflows since 2014, BofA stated in its weekly “Stream Present” report, citing information from EPFR.
Fairness funds posted $6.3 billion in inflows, with rising markets funds recording their second straight weekly influx, with $4.3 billion, and European fairness funds posting their thirty eighth weekly outflow, down $900 million, BofA added.
Shares obtained a lift final week from a perception amongst traders that the Federal Reserve might shift the tempo of price hikes down a gear, because the economic system reveals indicators of slowing.
Fed Chair Jerome Powell has since poured chilly water over such hypothesis, given stubbornly excessive inflation and a resilient labour market.
“Straightforward to pivot when unemployment is 8% and inflation is 3%. A lot tougher to pivot when inflation is 8% & unemployment is 3%,” BofA funding strategist Michael Hartnett wrote.
The S&P 500 (.SPX) gained nearly 4% final week, buoyed by optimism over quarterly earnings and the prospect of slower price hikes from the Fed.
And but the financial institution’s “Bull & Bear indicator” stayed at 0 for a seventh week, marking its longest interval of “max bearish” for the reason that 2008-2009 monetary disaster.
Supply: Reuters (Reporting by Amanda Cooper; Enhancing by Dhara Ranasinghe)
