LIVE MARKETS — BofA clients return to US stocks as S&P 500 hits records
Nasdaq down >1%, S&P 500 off ~0.9%, Dow edges red Tech is weakest S&P 500 sector; healthcare leads gainers Euro STOXX 600 index up ~0.4% Dollar rallies; US crude up ~1.5%; gold falls >1.5%; bitcoin down ~2% US 10-year Treasury yield rises to ~5.25% Welcome to the home for real-time coverage of markets brought to you reporters. You can share your thoughts with us at Bofa Clients Return To Us Stocks As S&p 500 Hits Records With the S&P 500 rising 1.2% and hitting fresh record highs last week, BofA clients returned to US stocks after stepping to the sidelines the week before. In a note published Wednesday, BofA Securities strategist Jill Carey Hall said clients were net buyers of equities, led by $1.1 billion in purchases of individual stocks. That marked a sharp reversal from the near-record single-stock outflows seen the previous week. In contrast, clients sold about $200 million of equity ETFs, the first week of ETF outflows since mid-June. Institutional investors led the buying, ending a two-week streak of net selling. Hedge funds and retail investors were also buyers. Clients favored small- and mid-cap stocks while trimming exposure to large caps. Corporate buybacks ac
25% Welcome to the home for real-time coverage of markets brought to you reporters. 2% and hitting fresh record highs last week, BofA clients returned to US stocks after stepping to the sidelines the week before. 1 billion in purchases of individual stocks. That marked a sharp reversal from the near-record single-stock outflows seen the previous week.
In contrast, clients sold about $200 million of equity ETFs, the first week of ETF outflows since mid-June. Institutional investors led the buying, ending a two-week streak of net selling. Hedge funds and retail investors were also buyers. Clients favored small- and mid-cap stocks while trimming exposure to large caps.
Corporate buybacks accelerated for a second straight week and remained slightly above seasonal norms. While year-to-date buyback activity remains below 2024-25 levels, it is still ahead of the pace seen over 2010-23. Even so, rolling 52-week buybacks as a share of S&P 500 market capitalization are at their lowest level since August 2021. Sector flows were mixed.
Clients bought stocks in six of the 11 S&P sectors, with consumer staples leading the way and posting their first inflows in six weeks. Technology and communication services also attracted money after heavy outflows the prior week, while financials saw their first inflows in five weeks. Utilities remained the biggest laggard, posting a fourth consecutive week of outflows. Industrials, meanwhile, extended their losing streak to 11 straight weeks.
Hall said the sector had become crowded due to its exposure to popular themes including AI, manufacturing, defense and oil. She cautioned that the unwind may not be over, noting that similar outflow streaks have historically lasted about 17 weeks on average and have often been followed by further relative underperformance. Within ETFs, clients continued to favor value and blend funds over growth funds for a second straight week. Real estate ETFs drew the largest inflows, while technology ETFs saw the heaviest selling.
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