Bank of America Corp. says investors are rushing back into stocks and bonds, with signs that inflation has peaked spurring bets the Federal Reserve will dial back its interest-rate hikes soon enough to keep the US economy out of a recession.
Global equity funds pulled in $7.1 billion in the week through Aug. 10, strategists led by Michael Hartnett wrote in a note, citing EPFR Global data. US stocks saw inflows of $11 billion, the biggest in eight weeks. Rate-sensitive growth funds posted the largest influx since December, while financial stocks drew cash for a second straight week, marking a reversal after 18 weeks of outflows, the data show. Global bonds saw inflows of $11.7 billion, while $4.3 billion was pulled out of cash.
