According to LSEG Lipper data, U.S. equity funds experienced a strong demand of $22.24 billion in the week ending March 26, marking the highest inflow since November 13, following net sales of $33.53 billion in the previous week. The focus of investors shifted back to the potential growth in corporate earnings due to signals of a more tempered tariff strategy from the Trump administration. However, U.S. stocks became volatile later in the week after President Trump announced a 25% import tax on foreign-made vehicles and auto parts.

UBS Global Wealth Management's Chief Investment Officer, Mark Haefele, anticipates continued volatility in the short term but foresees U.S. equities surpassing Europe and Asia throughout 2025. Despite concerns about tariffs, confidence remains in the economic outlook for the U.S. and the growth potential of leading AI companies.

Investors directed $23.1 billion into U.S. large-cap equity funds, reversing the previous week's net outflows of $27.38 billion. Small-cap and multi-cap funds attracted $3.07 billion and $105 million, respectively, while mid-cap funds saw minor net outflows of $74 million. U.S. sectoral equity funds experienced $1.96 billion in net outflows, mostly driven by consumer discretionary funds with the largest weekly outflow in five weeks at $737 million.

Conversely, outflows from U.S. bond funds increased, with investors withdrawing $2.97 billion compared to $513 million in the previous week. Short-to-intermediate government and Treasury funds experienced redemptions of $176 million, ending a 13-week streak of inflows. General domestic taxable fixed income and loan participation funds saw significant outflows of $1.25 billion and $780 million, respectively. On the other hand, money market funds received a net inflow of $2.52 billion, marking their first weekly increase after three weeks of outflows.