Investors are showing renewed confidence in the stock and bond markets as concerns about inflation ease, according to Bank of America (BofA). BofA’s research indicates that technology stocks are particularly attracting investor interest. Inflows of $11.9 billion were seen in equity funds, while bond funds drew in $11.7 billion, according to data from EPFR. However, Treasury inflation-protected securities (TIPS) experienced outflows of $700 million, the largest in nine weeks.
On Wednesday, data revealed that consumer inflation in the U.S. slowed down in April, as expected. This news is reassuring for investors, as it suggests that the recent increase in fuel prices has not led to a broader increase in consumer prices. This is important because it means that there is less likelihood of a delay in the much-anticipated rate cuts.