A trader works on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., October 16, 2025. REUTERS/Jeenah Moon
The corporate logo of financial firm Morgan Stanley is pictured on a building in San Diego, California September 24, 2013. REUTERS/Mike Blake/File Photo

(Reuters) -U.S. equity funds saw renewed demand in the week to October 15 as signals of further rate cuts from Federal Reserve Chair Jerome Powell and a solid start to the corporate earnings season eased concerns over trade tariffs and a government shutdown.

LSEG data showed investors purchased a net $1.04 billion in U.S. equity funds, recouping nearly a quarter of the previous week's $4.45 billion in outflows.

Stronger-than-expected quarterly results from Morgan Stanley and Bank of America also helped bolster risk sentiment following a week of withdrawals.

Investors pumped about $4.39 billion into U.S. sectoral funds, extending purchases into these funds to a fourth straight week.

They bought tech and financial sector funds of a notable of $1.18 billion and $920 million, respectively.

U.S. large-cap and small-cap fund segments, however, saw $2.42 billion and $114 million weekly outflows, while mid-cap funds saw a net $495 million weekly inflow.

Money market funds witnessed a net $20.98 billion outflow during the week that concluded a three-week trend of net inflows.

U.S. bond funds received a second successive weekly inflow to the tune of $6.49 billion.

Short-to-intermediate investment-grade funds, short-to-intermediate government and treasury funds and municipal debt funds stood out as these funds received inflows of $2.13 billion, $890 million and $678 million, respectively.

(Reporting by Gaurav Dogra; Editing by Leroy Leo)