May 16, 10:11 AM

U.S. Equities Inflow $19.8B, VIX Below 18; Europe Sees Biggest Inflow Since 2015, Gold Market Cap Near 40%

The Cboe Volatility Index (VIX) has declined to levels around 17.3 to 18, down from highs of 25 and even 60 earlier, indicating reduced market volatility. This decrease aligns with the S&P 500's expected movement of approximately 1%, reflecting investor confidence amid global uncertainties. According to Bank of America, U.S. equities experienced a net inflow of $19.8 billion, marking the first inflow in five weeks, while European equities are on track for their largest annual inflow since 2015. Global equity funds saw a surge in inflows, with $25 billion added in the week ending May 14, up from $2 billion the previous week. Notably, leveraged equity funds attracted about $14 billion in net inflows over the last two weeks, surpassing records set during the 2020 recovery, with over half directed into U.S. leveraged long ETFs. Gold has also seen increased interest, with its market capitalization representing roughly 40% of the U.S. equity market cap, below historical peaks during the 1970s and 2011. These trends suggest optimism driven by trade deal progress and easing inflation concerns.

#Cboe Volatility Index #Bank of America #European

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