What is the current state of the U.S. stock market?

The U.S. stock market, as represented by the S&P 500 and Nasdaq indices, has reached record highs in the past week, driven by strong corporate earnings.

How have U.S. equity funds performed recently?

U.S. equity funds have seen a significant turnaround, attracting $6.34 billion in net inflows in the week leading up to August 1st, 2025. This marks the first time in three weeks that these funds have experienced positive money flows.

What factors have contributed to the recent inflows into U.S. equity funds?

The inflows have been fueled by optimism over a potential U.S.-EU trade deal and an impressive corporate earnings season, with over 80% of S&P 500 companies beating analyst estimates.

Home / Business and Economy / Investors Flock to U.S. Stocks Amid Trade Deal Optimism

Investors Flock to U.S. Stocks Amid Trade Deal Optimism

1 Aug

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Summary

U.S. equity funds see largest weekly inflow since July 2022
S&P 500 and Nasdaq hit record highs on strong corporate earnings
Investors pour $6.08 billion into U.S. bond funds

Investors Flock to U.S. Stocks Amid Trade Deal Optimism

In the week leading up to August 1st, 2025, U.S. equity funds experienced a significant turnaround, attracting $6.34 billion in net inflows. This marked the first time in three weeks that these funds saw positive money flows, fueled by optimism over a potential U.S.-EU trade deal and an upbeat corporate earnings season.

The S&P 500 and Nasdaq indices both hit record highs on July 30th, 2025, driven by strong earnings reports from major companies like Microsoft and Meta Platforms. Data from LSEG Lipper showed that 81% of the 317 S&P 500 constituents that have reported earnings so far have exceeded analyst estimates, surpassing the average 76% beat rate seen over the previous four quarters.

The large-cap equity funds segment witnessed a significant $7.81 billion inflow during the week, reversing a three-week streak of net selling. However, small-cap and mid-cap funds continued to experience net outflows of $3.9 billion and $35 million, respectively. Sectoral funds, on the other hand, gained a net $962 million, with the financial and tech sectors drawing the largest inflows.

Investors also remained bullish on the U.S. bond market, pouring $6.08 billion into bond funds for the 15th consecutive week. Short-to-intermediate investment-grade funds, government and treasury funds, and municipal debt funds all saw substantial inflows.

Disclaimer: This story has been auto-aggregated and auto-summarised by a computer program. This story has not been edited or created by the Feedzop team.