Market

S&P 500 notches third record close this week


US money market funds hit a new record of $6.4tn in the wake of last week’s Federal Reserve rate cut.

Inflows from institutional investors topped $113bn in the week to Wednesday, the largest weekly inflow since the height of the 2023 regional banking crisis, according to the Investment Company Institute.

Shelly Antoniewicz, deputy chief economist, said pension funds, endowments and other large investors were taking advantage of the fact that yields on money market funds react more slowly to rate cuts than those on short-term bonds and loans.

“On the institutional side, inflows to money market funds tend to ramp up during the easing cycle,” she said. 



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