NEW YORK, Sept 20 (Reuters) - Investors poured a staggering $10.4 billion into U.S. equity funds on Tuesday, the same day the Federal Reserve cut a key interest rate more than expected, a research firm said.
Mutual fund investors piled into U.S. equities on Tuesday, contributing the second-largest single-day amount of investment recorded by TrimTabs Investment Research, the Santa Rosa, California-based firm said late on Wednesday in a statement.
As a reference point to Tuesday’s investment flow, stock funds took in $10.75 billion in July, compared with $4.87 billion in the previous month, according to the Investment Company Institute. August numbers still haven’t been released.
The huge investment surge on Tuesday spurred U.S. stocks to post their biggest jump in four years after the Fed cut the federal funds rate by half a percentage point, giving investors hope the U.S. economy can ride out a prolonged housing slump.
The record for a single day of investment flows into equity funds was $11.9 billion set on Jan. 4, 2001, TrimTabs said.
Global equity funds, which have been garnering the lion’s share of mutual fund investments recently, received a modest $2.2 billion on Tuesday, TrimTabs said.
Although investment flows can rapidly reverse course, if fresh cash keeps flowing into U.S. equity funds in a sustained manner, the benchmark Standard & Poor's 500 Index .SPX could quickly punch through its record high set in July.
The index was about 1.5 percent below the record high as of Wednesday.
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