U.S. equity funds log biggest inflows since 2024 as Fed rate cut looms

￰0￱ funds recorded increased inflows at the beginning of October as the likelihood of another rate cut by the Fed looms this ￰1￱ Lipper data revealed that ￰2￱ funds received $36.41 in net inflows during the week, their largest weekly net purchase since November 13, ￰3￱ large-cap equity funds recorded net weekly inflows of $40.75 billion, the largest amount since around 2022. Small-cap and mid-cap funds experienced outflows of $2.59 billion and $2.28 billion, ￰4￱ funds record outflows for the week A rotation into global equities: Since 2010, global equity ETFs have seen a massive +$6.1 trillion in cumulative net ￰5￱ the same period, long-only equity funds have recorded -$3.1 trillion in net ￰6￱ trend accelerated in 2020 and global equity ETF… ￰7￱ — The Kobeissi Letter (@KobeissiLetter) September 29, 2025 LSEG data also showed investors offloaded a net $5.8 billion worth of bond funds, ending their 23-week-long trend of net ￰8￱ invest more in short-to-intermediate government and treasury funds to a total of $9.37 billion in their largest weekly sales since at least January 2022.

U. S. short-to-intermediate investment-grade funds saw $1.95 billion in inflows, while general domestic taxable fixed-income funds recorded net inflows of $1.55 ￰9￱ market funds also recorded an increase in net investments, surging to a four-week high of $47.08 billion during the ￰10￱ Lipper data revealed that global equity funds saw a net $49.19 billion worth of inflows, the most since November 13, ￰11￱ equity funds recorded weekly inflows to the tune of $7.36 billion, while Asian funds saw $3.94 billion in weekly ￰12￱ sectoral funds saw $11.56 inflows last week, the largest since January ￰13￱ led the net purchases with $4.15 billion, followed by financials with $3.43 ￰14￱ bond funds recorded positive net inflows for 24 weeks straight, but weekly net investments plummeted to a 14-week low of $6.06 billion.

Euro-dominated bond funds saw $7.37 billion in inflows, and high-yield bond funds recorded $2.41 billion in weekly inflows. Short-term bond funds ended their 13-week period of inflows with net $8.52 outflows for the ￰15￱ market funds received a net of $8.84 billion, posting the first weekly net purchase in three ￰16￱ equity funds recorded strong demand in the week through October 1, following an inline ￰17￱ report and a weaker-than-expected jobs ￰18￱ regains momentum in Q3 ￰19￱ funds surged as the ￰20￱ spending increased slightly more than expected in ￰21￱ ￰22￱ Department reported last Friday that the economy has so far regained most of its momentum from the third ￰23￱ government shutdown witnessed on Wednesday suggested that the Bureau of Labor Statistics is closed and unable to release the official government jobs report on ￰24￱ weak labor report also came as chances of the Federal Reserve cutting interest rates again this year rose after the ￰25￱ bank resumed policy easing in ￰26￱ the time of publication, the CME FedWatch tool shows a 97.8% probability that the central bank will cut rates by 25 bps during the upcoming October 29 Fed meeting.

“There is no support in this report for (Fed Governor) Stephen Miran’s suggestion that policy interest rates have to be cut right away, and by a lot. Indeed, there is no recommendation in these numbers for any easing of monetary conditions at all.” -Carl Weinberg, Chief Economist at High Frequency ￰27￱ ￰28￱ market declined, with ￰29￱ shedding 32,000 jobs in ￰30￱ processing company ADP’s private sector employment report on Wednesday showed lower than the expected job report of 45,000 in the ￰31￱ Chief Economist Nela Richardson argued that last month’s release validated that ￰32￱ have been cautious with hiring, despite the strong economic growth witnessed in the second ￰33￱ weak labor report followed a slightly more positive GDP and unemployment claims report for the ￰34￱ up to $30,050 in trading rewards when you join Bybit today