Investors pour $63.8 billion into US stocks at fastest pace in three months

  • Investors directed $79.3 billion into stocks while withdrawing money from corporate bonds.
  • US stocks received $63.8 billion, while investment-grade and high-yield bonds lost $1 billion and $2.5 billion.
  • Bank of America identified commodities, credit and Chinese bonds as fourth-quarter risks.

Investors directed a net $79.3 billion into stocks in the week through Wednesday, including $63.8 billion into US equities, while withdrawing $1 billion from investment-grade bonds and $2.5 billion from high-yield bonds, according to Bank of America Global Research’s weekly Flow Show, which uses EPFR data. The shift came as the world’s largest central banks raised interest rates or signalled readiness to do so, with oil above $100 a barrel and inflationary pressure linked to the war in the Middle East spreading through the economy. Bank of America said positioning, policy and profits were all peaking: investors remained too bullish, profits appeared set to peak next year, and Federal Reserve monetary policy was beginning to tighten. It said the key fourth-quarter risks were commodities, credit and Chinese bonds. A commodity basket led by oil had risen 47% in 2026, while tight supply, particularly in diesel, risked driving inflation higher. The bank also warned that a sharp repricing of credit risk could indicate the Federal Reserve was overestimating GDP, while signs of a possible China-related deflation shock in Europe included a record German trade deficit and declining German industrial production.

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