Technology stocks recorded the largest single-week inflows in data going back to 2008, according to Bank of America’s weekly client flows report. The inflows ranked as the 17th biggest week on record and stood at the 98th percentile when adjusted for the S&P 500 Tech sector’s market capitalization.
The broader market extended its streak of equity inflows to seven consecutive weeks. The S&P 500 gained 0.4% last week, reaching a fresh all-time high. Single stocks led the buying with $2.7 billion in purchases, reversing two weeks of outflows, while equity ETFs recorded more modest inflows of $0.4 billion, extending their eight-week inflow streak.
Institutional clients resumed equity purchases after two weeks of selling, while hedge funds extended their buying for a third straight week following a record week the prior period. Retail investors remained net sellers for a third consecutive week. Buying was concentrated in large and small-cap stocks, with mid-caps seeing net selling.
Corporate buyback activity picked up last week, led by the Financials sector. Year-to-date annualized buybacks by clients are running slightly below 2025 full-year levels and well below the 2024 record, though still above the 2016-2023 average.
Seven sectors experienced outflows, with Industrials leading the selling for a third straight week. Bank of America noted Industrials as one of the most crowded and expensive sectors, despite improving manufacturing conditions. Materials stocks posted the longest outflow streak at seven weeks. Small net buyers included Energy, Health Care, and Real Estate.
ETF flows showed a preference for Value and Blend funds over Growth ETFs for a second consecutive week. Clients bought ETFs across all size segments except large caps, with purchases spread across six of 11 sectors. Communication Services ETFs led inflows, while Tech ETFs recorded outflows.
Bank of America’s Tech Titans strategy, launched in November 2023, has outperformed the S&P 500 by more than double since inception. Past top performers within the strategy include Siemens Energy, up 231.5%, and Sandisk, up 189%.
