Dip-Buyers Abound for U.S. Stocks After Latest Trade Tumult
(Bloomberg) -- U.S. equities are clawing back some of their losses triggered by the latest trade war flare-up. Who's buying the dip? Using Bank of America Corp. clients as a proxy, it appears to be just about everyone.
BofA clients snapped up $5.6 billion of stocks last week as the S&P 500 Index retreated 3.1%, according to data the bank released Tuesday. That was the second-most in any week since 2008. Institutions drove most of the inflows, though hedge funds and individuals were also net buyers. Companies themselves also continued to move in, with the year-to-date corporate buyback rate holding at 12%.
“Flows suggest clients remained optimistic despite the announcement of additional tariffs on Chinese goods and more companies cutting guidance/citing tariff impacts,” BofA strategists led by Jill Carey Hall wrote in a note.
The S&P 500 capped its worst week of 2019 in the five days through Friday after President Donald Trump disquieted the market with a surprise announcement of a new round of tariffs on Chinese goods. The sell-off worsened Monday as China retaliated by devaluing its currency. The market stabilized Tuesday after a drop of as much as 6% from its July 26 record close.
The BofA data show buying was broad-based across both single stocks and exchange-traded funds for three straight weeks, a pattern last seen in mid-to-late May, when the market sold off due to a tariff hike. Clients also bought stocks across size segments, with record inflows into large caps last week.
To contact the reporter on this story: Richard Richtmyer in New York at rrichtmyer@bloomberg.net
To contact the editors responsible for this story: Courtney Dentch at cdentch1@bloomberg.net, Morwenna Coniam, Dave Liedtka
©2019 Bloomberg L.P.
-
A New Samvat Wishlist: Inclusive Prosperity And Human Development
India has strengthened its economic foundations through infrastructure, digital access and enterprise. Its next growth chapter must deepen productivity, create better livelihoods and widen participation in prosperity.
-
Love, Sex Aur Dhokha: The Audacious Plot To Spy On Jensen Huang
A Taipei dinner, a Singapore chip buyer and a suspected Chinese asset: inside the alleged spy operation that got close to NVIDIA's Jensen Huang.
-
Ten Things I Learnt This Samvat
Patience can be a trap. Cheap stocks can stay cheap. Leverage can wipe you out. What did Samvat 2082 teach us? Niraj Shah writes on 10 lessons from the year gone by.
-
Talking Points This Week: Tech Nerves, FII Buying, And A Faraway Banking Shock
The global markets are not shining this Diwali. The exception in the large markets is, India.
-
Midterm Rally Lasted A Day. The Hard Reality Of A Divided US May Last Two Years | Opinion
Between a contested AI boom, a debt ceiling that arrives in 2027 and a president with every incentive to act alone, the next two years may prove more volatile than the first day's rally suggests.
-
Blue Wave Will Derail the AI Trade but Won't Dismantle the AI Era | Unhedged Position
The Democrats' sweep of the US Congress will see politics collide with economic forces both over the long and short term.
-
It's Time To Take The GST Council's Bet On Trust Global
Payment records can prove India's services exports, and clear, proportionate rules can bring foreign digital sellers into the tax net.
-
Opinion | India at 38: From Innovation Overperformer to Innovation Powerhouse
India now has 453 VC-backed deep science startups, 18 of them late-stage, after 117 percent growth since 2020. Laurus Labs, at USD 9.3 billion, is the most valuable deep science company in any middle-income economy outside China.
-
Navigating Energy Crossroads: S Jaishankar's Call For Diversified Supply Chains At G20 Ministerial Meeting
As geopolitical fault lines continue to test maritime trade routes and commodity flows, Jaishankar's message remains pertinent: true economic resilience requires open markets, protected transit lines, and a genuine commitment to multilateral cooperation rather than coercion.
