Bank of America Securities Reports Client Activity in US Equities

Bank of America Securities reported that last week, its clients were net buyers of US equities, with total inflows of $4.9 billion. This marks the second consecutive week of net purchases and the largest inflow since mid-September.

Similar to the previous week, buying was concentrated on both single stocks and exchange-traded funds (ETFs), with single stock purchases primarily focused on large-cap names.

Institutional and private clients were net buyers for the second week, while hedge fund clients transitioned to net sellers for the first time in four weeks. Clients invested in seven of the eleven sectors, with Technology leading inflows, driven by all major client groups.

Health Care and Communication Services also saw significant inflows, continuing a trend from the prior week. Financials and Energy recorded inflows, rebounding from previous outflows during election week, with Financials seeing inflows for the first time in six weeks.

Conversely, Industrials, Materials, Real Estate, and Consumer Staples experienced outflows, with Materials extending its selling streak to four weeks.

In ETF investments, clients allocated funds across seven sectors, with Consumer Discretionary marking the largest inflows since February, followed by Materials and Financials. In contrast, Health Care and Real Estate ETFs faced the most significant outflows.

Corporate client buybacks slowed but remained above seasonal norms as a percentage of S&P 500 market capitalization. Year-to-date, corporate buybacks are on track to hit record highs, according to BofA.

US stocks began the week positively, with the Nasdaq and S&P 500 ending Monday’s session higher, as investors anticipated Nvidia (NASDAQ: NVDA)'s quarterly results. Tesla (NASDAQ: TSLA) also saw a surge amid optimism over potential policy changes under an incoming Trump administration.

Nvidia is set to announce its third-quarter earnings on Wednesday, with focus on chip demand and the sustainability of the AI-driven market enthusiasm fueling much of this year’s rally.