US equity funds draw inflows as tech buying resumes

July 3 (Reuters) - U.S. ‌equity funds ​saw ​renewed inflows in the week to July 1 as easing U.S.-Iran tensions and ‌renewed demand for technology stocks lifted sentiment, ⁠though caution ahead of a closely watched payrolls report ‌capped purchases.

Investors bought a ‌net $1.03 billion of U.S. equity funds, partially reversing the previous week's $3.47 billion in net sales, ​LSEG Lipper data showed.

A softer than expected June employment report, showing the economy added ⁠just 57,000 jobs last month, reduced expectations of a Federal Reserve ​rate hike by year-end.

Technology sector funds attracted $3.42 billion as sentiment improved following net ​sales of $19.97 billion the previous ‌week. Financial and healthcare funds also drew inflows of $1.96 billion and $1.47 billion, ⁠respectively.

U.S. small-cap, mid-cap and equity income funds, however, posted outflows of $694 million, $2.1 billion and $1.33 billion, respectively. Large-cap ⁠funds drew $7.2 billion in weekly inflows.

U.S. bond funds attracted ​a net $9.88 billion, extending their buying streak to an 11th straight week.

Short-to-intermediate investment-grade funds and general domestic taxable ‌fixed income funds saw notable inflows of $4.22 billion and $3.53 billion, respectively. Short-to-intermediate government ‌and Treasury funds, however, had $2.1 billion in ⁠outflows.

Investors also allocated $47.82 billion ‌to money market ​funds, the largest amount in four weeks.

(Reporting by Gaurav Dogra; Editing by Jan ‌Harvey)

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