U.S. equity funds close 2025 on a strong note

Group 1 - U.S. equity funds experienced strong inflows of approximately $16.89 billion for the week ending December 31, following $18.3 billion in the previous week, driven by optimism over corporate earnings and an AI-driven rally [1][3] - The S&P 500, Nasdaq, and Dow Jones Industrial Average recorded annual gains of 16.39%, 20.36%, and 12.97% respectively, marking a third consecutive year of positive performance [2] - Analysts project earnings growth for U.S. large- and mid-cap companies to reach about 15.13% in 2026, an increase from the 12.92% forecast for 2025 [2] Group 2 - Large-cap equity funds saw net purchases of $16.87 billion in the most recent week, a decrease from approximately $37.4 billion in the prior week, while small-cap and mid-cap funds faced outflows of $1.42 billion and $269 million respectively [3] - U.S. bond funds experienced a withdrawal of $2.09 billion after 12 consecutive weeks of net investments, with significant outflows from short-to-intermediate government and treasury funds totaling $5.43 billion [4] - Money market funds attracted a substantial $83.71 billion in net purchases, marking the largest weekly inflow in four weeks [6]