Live Markets: BofA clients pile into stocks as institutions lead buying
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BOFA CLIENTS PILE INTO STOCKS AS INSTITUTIONS LEAD BUYING
BofA clients kept putting money to work last week, extending a recent turn toward U.S. equities.
BofA Securities equity and quant strategist Jill Carey Hall said clients were net buyers of stocks for a second straight week, as the S&P 500 .SPX edged up 0.1%. The inflows were the largest since mid-July and ranked as the sixth-largest weekly buying spree in BofA's data going back to 2008.
The buying was split between individual stocks and equity ETFs. Clients purchased about $3.9 billion of single stocks, marking a second consecutive week of inflows, while equity ETFs attracted another $3.1 billion, extending their inflow streak to 11 weeks.
Institutions and hedge funds drove the buying for a second straight week, Hall wrote in a note published Wednesday. Private clients, meanwhile, remained net sellers for a sixth consecutive week.
Investors favored large- and mid-cap stocks while continuing to shun small caps. Corporate buybacks accelerated for a second straight week, led by financials. While buyback activity remains below the record pace seen in 2024 and slightly below 2025 levels, it is still running above levels seen between 2016 and 2023.
Sector flows were broadly positive. Clients bought stocks in eight of the S&P 500's 11 sectors, with technology attracting the most money. Communication services also saw inflows for the first time in five weeks.
Industrials bucked the trend, posting the largest outflows and extending their selling streak to five weeks. Hall noted the sector has been one of the market's most crowded and expensive trades, with positioning beginning to come off elevated levels.
ETF flows painted a slightly different picture. Clients bought value, growth and blend funds, with growth ETFs seeing inflows for the first time in five weeks. Healthcare ETFs led sector ETF buying, while technology ETFs posted the largest outflows, even as investors continued to pour money into individual tech stocks.
(Terence Gabriel)
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