Institutional Investors Drive U.S. Stock Purchases Amid Shifting Market Trends

A recent surge in institutional investment activity has dominated the U.S. stock market landscape. According to Bank of America, institutional investors were the sole net buyers last week, driving a $4.3 billion inflow into exchange-traded funds (ETFs) – the largest since December 2022. Meanwhile, retail investors sold shares worth $2.6 billion. Hedge funds followed suit by selling their holdings during this period. This trend reveals a defensive approach, with outflows from technology and communication services sectors while inflows were seen in consumer staples and healthcare.