Investors pour $40 billion into stocks in two weeks as markets surge -BofA

By Harry Robertson

LONDON (Reuters) – Investors have poured $40 billion into stocks since Oct. 9, the biggest two-week inflow since February 2022, as equities rallied, Bank of America said on Friday.

In the four trading sessions to Tuesday, investors put $16.5 billion into stock funds, BofA said in its weekly Flow Shows research note, citing figures from financial data provider EPFR.

Global stocks have surged since the end of October as data has shown U.S. inflation is cooling faster than expected. That has raised hopes among investors that central banks might start cutting interest rates by the middle of 2024.

The U.S. stock index has risen 8.6% so far in November, putting it on track for its biggest monthly gain since July 2022. MSCI’s index of global stocks, up 8.5% so far, looks set for its biggest monthly rise in three years.

Cash funds continued to attract investors, with $40 billion of inflows across the week, BofA said. They currently have juicy yields due to high central bank interest rates.

Investors put $4 billion into bond funds, with investment grade corporate bonds receiving $3.1 billion in the biggest inflow in 15 weeks. There were slight outflows from Treasury funds.

Bank of America said its ‘Bull and Bear’ indicator was no longer giving a contrarian “buy” signal, after the rush into stocks in recent weeks.