Caution over midterms and AI cash burn drives surge in US money market fund inflows

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Caution over midterms and AI cash burn drives surge in US money market fund inflows

Nov 6 (Reuters) - US money market funds posted their largest weekly inflow in six months in the week to November 4, as caution ahead of the US midterm elections and concerns about rising AI spending and cash burn at major technology hyperscalers boosted demand for safe-haven assets.

Investors added a net $117.97 billion to US money market funds during the week, marking the largest weekly net investment since May 6, according to LSEG Lipper data.

US equity funds attracted $14.81 billion in net inflows, reversing the previous week’s $6.54 billion net outflow, as declining energy prices and a fall in Treasury yields from their October highs supported sentiment.

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