Bank of America clients extend U.S. stock buying streak to four weeks

Institutional investors posted their biggest weekly net purchases since December 2020 as inflows favored technology, financials and industrials, while buybacks stayed above year-earlier levels.

Summary

Bank of America clients continued buying U.S. stocks for a fourth straight week even as the S&P 500 fell 0.6%. Institutional investors drove the move, recording their largest weekly net purchases since December 2020 and the second-largest since Bank of America began tracking the data in 2008. Retail investors also remained net buyers, while hedge funds were net sellers for a third consecutive week. Inflows were concentrated in technology, financials and industrials, with industrials logging a record net inflow after months of outflows. Bank of America also said corporate share buybacks slowed during earnings season but still ran 19% above the year-earlier pace over the past four weeks, helping support the stock market.

Terms & Concepts
  • Institutional investors: Large professional investors such as asset managers, insurers and pension funds.
  • Share buybacks: Repurchases of a company's own stock, which can support demand and reduce shares outstanding.
  • Net inflow: A period in which purchases or incoming capital exceed sales or outflows.