Fri Sep 20 08:16:46 UTC 2024: ## U.S. Stocks See Major Inflow Fueled by Fed Rate Cut: BofA
**New York, NY** – U.S. stocks experienced their third-largest inflow of 2024 last week, with $33.8 billion flowing into the asset class, according to a report released Friday by Bank of America. This surge was primarily driven by the large-cap sector, attracting a whopping $26.2 billion.
The report also highlighted a strong influx into value stocks, marking their largest inflow since December 2023 at $4.2 billion. Small-cap stocks followed closely with inflows of $3.9 billion, while growth stocks attracted $1.9 billion.
Globally, equity funds attracted $38.6 billion, demonstrating strong momentum across various regions. While the U.S. led the way, Japan saw $1.4 billion in inflows, and emerging markets extended their 16-week run of inflows with $1.3 billion. However, European equities experienced their fourth consecutive week of outflows, totaling $0.8 billion.
BofA strategists attribute the strong inflow to the Federal Reserve’s recent decision to cut interest rates by 50 basis points. They view this as a “panic cut” aimed at preventing a recession in the small business sector and slashing real rates to encourage economic growth.
According to BofA, the Fed’s expected cuts, totaling 250 basis points, could fuel 15-20% earnings per share growth in 2025, making the U.S. stock market a highly attractive investment for investors.
The report suggests that if the Fed manages to achieve a “soft landing” for the U.S. economy, international stocks and commodities would become the “best plays.” These asset classes are considered more attractively priced and are starting to outperform, according to BofA. Additionally, both international stocks and commodities benefit from the recent easing of geopolitical tensions.
Meanwhile, the bond market recorded $15.5 billion in inflows last week, marking 39 consecutive weeks of positive flows.
First Piper 