Key Takeaways

• Retail investors and hedge funds were net buyers of equities last week as major U.S. indexes fell, according to new research.

• Bank of America said its clients bought individual stocks and sold exchange-traded funds.

• The buying was broad-based, with inflows for eight of the S&P 500's 11 sectors.

Retail investors and hedge funds were net buyers of equities last week as major U.S. indexes fell, according to new research.

Stocks dropped last week, with the benchmark S&P 500 turning in its worst weekly performance in more than a year. Tech stocks, including several high-profile chip shares, were hit particularly hard.

Still, investors largely bought the dip, according to a report released Tuesday by Bank of America that analyzed the moves of its retail and hedge-fund clients. Clients bought individual stocks, pushing them to their highest inflows in nine weeks, and sold exchange-traded funds (ETFs) for a second week.

Broad-Based Buying

The buying was broad-based, with inflows for eight of the S&P 500's 11 sectors; real estate, industrials, and materials were the exceptions. Tech saw its largest inflows since June.

Stocks are off to a better start this week, with the major indexes rising Monday and making muted moves early Tuesday. Investors this week are largely tuned into the next CPI report, due tomorrow; tonight's presidential debate; and next week's Federal Reserve meeting, which could bring an interest-rate cut.

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