Investors Pour $38 Billion Into U.S. Stock Funds as Market Risks Ease

June 22, 2026
By Mintesinot Nigussie

U.S. investors sharply increased allocations to equity funds last week as improving expectations around geopolitical tensions and inflation risks encouraged demand for risk assets.

The shift in sentiment followed an extension of a ceasefire agreement between the United States and Iran by another 60 days, allowing negotiations to continue on a longer-term settlement. The development reduced concerns over possible disruptions linked to the Strait of Hormuz.

U.S. equity funds recorded net inflows of 38.37 billion US dollars in the week through June 17, the strongest weekly performance since November 13, 2024, according to LSEG Lipper data cited by Reuters.

Technology companies attracted the largest share of investor demand, with technology-focused funds receiving a record 21.46 billion US dollars. Other industries also recorded inflows, including industrial funds with 2.35 billion US dollars, financial funds with 639 million US dollars and metals and mining funds with 586 million US dollars.

Investor appetite extended across several stock categories. Small-cap funds attracted 6.52 billion US dollars, while multi-cap and mid-cap funds received 5.02 billion US dollars and 1.42 billion US dollars respectively. Large-cap funds, however, recorded net outflows of 6.55 billion US dollars.

Demand also remained strong in fixed-income markets, with U.S. bond funds receiving 9.85 billion US dollars and extending their weekly inflow streak to nine consecutive weeks.

General domestic taxable fixed-income funds led bond demand with 3.4 billion US dollars in inflows, followed by short-to-intermediate investment-grade funds, which attracted 3.09 billion US dollars.

Money market funds recorded 53.25 billion US dollars in net purchases after investors withdrew 16.6 billion US dollars in the previous week.

Source: FSX Business News