US Money-Market Funds See Six-Month Inflow High

Higher interest rates may benefit some financial stocks, while also improving returns for cash held in money market funds. U.S. money market funds saw a sharp weekly inflow as investors sought safer assets amid election uncertainty and concerns about technology companies’ AI spending; financial and health-care funds also attracted money, while several other sectors saw outflows. In the U.K., a rate increase to 4% could improve defined-benefit pension funding and support more attractive annuity rates, though persistent inflation and market volatility remain risks for savers.