September 18, 2019 / 3:16 PM / a month ago

Investors move back into U.S. stock funds on hopes for trade resolution

Traders work on the floor at the New York Stock Exchange (NYSE) in New York, U.S., September 18, 2019. REUTERS/Brendan McDermid

NEW YORK (Reuters) - Investors ended a 3-week retreat from Wall Street last week by sending nearly $8.6 billion into mutual funds and exchange-traded funds that hold U.S. stocks, according to data released Wednesday by the Investment Company Institute.

The $8.6 billion in inflows was the largest net gain for U.S. stock funds since mid-June and came as China announced tariff exemptions on a basket of U.S. goods, igniting investor hopes that the trade war between the world’s two largest economies could be resolved.

Despite last week’s gains, U.S. stock funds have lost nearly $89 billion in net outflows since the start of the year. Those losses have come amid a rally that has pushed the benchmark S&P 500 index up nearly 20% year-to-date.

Bond funds, meanwhile, brought in slightly more than $13 billion last week, the largest single-week gain since February. Those inflows continued a streak that has swelled the category by nearly $303 billion in assets since the start of the year.

World stock funds lost slightly more than $1 billion last week, bringing the year to date loss for the category to $34.3 billion.

Reporting by David Randall; Editing by Nick Zieminski

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