ETF inflows and outflows

What happened: Investors poured $39.6 billion into U.S.-listed ETFs during the week ending April 17, with U.S. equity ETFs leading the way at $23.5 billion, followed by international equity ETFs at $13.7 billion. Notably, the Invesco NASDAQ 100 ETF (QQQM) saw a $175.1 million inflow, a 6.8% increase week over week. Meanwhile, the Tradr 2X Long SPY Monthly ETF (SPYM) added 58.9 million units, a 4.0% increase.

Market impact: This surge in ETF inflows signals strong investor confidence in equity markets, particularly U.S. and tech stocks. The inflows into QQQM and SPYM indicate a bullish sentiment towards growth-oriented and large-cap stocks. This trend could drive further gains in these sectors and potentially lead to a re-evaluation of valuations.

What to watch next: Investors should closely monitor the upcoming earnings reports from major tech companies, such as Alphabet (GOOGL) on April 26 and Microsoft (MSFT) on April 27. Additionally, the release of the U.S. GDP growth rate on April 28 could provide insight into the overall economic health and potentially influence investor sentiment towards equity markets.