Bank of America’s client flow trends show significant stock inflows, the largest since mid-December, with clients net buying US equities for a second consecutive week.
Inflows amounted to $3.3 billion, the highest in five weeks, according to Bank of America equity strategists.
This buying trend has been consistent for seven consecutive weeks in single stocks, while equity ETFs saw net selling for the third week.
Notably, hedge funds and institutional clients were buyers for the first time in ten and five weeks, respectively. Corporate buybacks, though decelerating, have remained above typical levels for ten consecutive weeks.
The Technology, Media, and Telecommunications (TMT) sector led the momentum, with notable inflows in Communication Services and Health Care.
In contrast, Financials experienced the largest outflows in seven weeks. Defensive sectors received inflows for the third straight week, while cyclicals, excluding Financials, saw inflows for the first time since November.
“We are more positive on cyclicals,” analysts at Bank of America said in a note.