US Equities Record Inflow Amid Trump Election Win

US equities recorded their largest single-day inflow in five months on Wednesday, following Donald Trump being announced the winner of the presidential election, with $20 billion flowing into the market, according to Bank of America (BofA).

US small caps also experienced a record inflow since March, totaling $3.8 billion, while the financial sector received its largest daily inflow on record at $2.9 billion.

Over the week ending November 6, US equities continued to draw capital with inflows for the fifth consecutive week, amassing $32.8 billion. In contrast, European and emerging markets saw outflows of $900 million and $1.1 billion, respectively.

The tech sector recorded a weekly inflow of $500 million, though it faced its largest cumulative outflow since 2002 over the last four weeks.

BofA strategists, led by Michael Hartnett, suggest that the period from the US election to Inauguration Day represents a “risk-on window of opportunity” for US stocks. Hartnett recommends investors focus on sectors expected to benefit from potential Trump-era policies, including financials, REITs, and small caps, particularly those less exposed to long-duration debt risks.

Moreover, strategists advise investors to “buy international stocks” as China eases fiscal policy and the ECB cuts rates aggressively in anticipation of America First tariffs. Specifically, they identify compelling opportunities in China’s internet sector, EU cyclicals, and oversold emerging markets (EMs) that could benefit from deglobalization.

By style, US large caps gained $24.2 billion for the week ending Nov. 6, small caps saw an increase of $4.5 billion, while growth stocks experienced outflows of $600 million, and value stocks declined by $1.9 billion.

By sector, financials led with inflows of $2.5 billion, whereas health care, consumer, and REITs faced outflows of $700 million, $1 billion, and $1.1 billion, respectively.

Bonds continued to attract capital for the 46th consecutive week, totaling inflows of $14.5 billion.