U.S. equity funds recorded their strongest weekly inflows since November, with investors adding a net $22.24 billion for the week ended March 26. That total fully reversed the prior week’s $33.53 billion outflow as sentiment shifted toward the potential for stronger corporate earnings. Markets initially reacted favorably to indications the Trump administration might adopt a more measured approach to tariffs, which buoyed investor appetite for equities. Volatility returned later in the week, however, after President Trump announced a 25% import tax on foreign-made vehicles and auto parts.
The inflows were concentrated in large-cap funds, which attracted $23.1 billion and flipped a $27.38 billion outflow from the previous week into positive net flows. Small-cap and multi-cap funds also saw inflows of $3.07 billion and $105 million, respectively. Mid-cap funds experienced a small net outflow of $74 million.
On the sector side, investors pulled $1.96 billion from sector-focused equity funds. Consumer discretionary funds led those withdrawals, posting their largest weekly outflow in five weeks at $737 million. Other sector moves were more mixed as investors rebalanced exposures in response to the changing tariff outlook and renewed focus on corporate earnings.
Fixed-income flows cooled as bond funds recorded net outflows of $2.97 billion for the week. That marked a shift away from a 13-week run of inflows into short-to-intermediate government and Treasury funds. In contrast, money market funds saw renewed demand, drawing $2.52 billion—their first weekly inflow in three weeks—as investors sought liquidity and a safe haven amid the late-week volatility.
Overall, the week highlighted a swing in investor behavior driven by shifting policy signals: a tentative move toward equities on hopes of a calmer trade stance and stronger earnings prospects, followed by a quick return to caution after new tariff announcements. The result was a significant rebound in U.S. equity fund inflows led by large-cap strategies, alongside selective redemptions from sector funds and a modest retreat from bond investments.