Dec 13 Reuters U.S. investors snapped up equity funds for a sixth consecutive week through Dec. 11, spurred by the potential for a Federal Reserve interest rate cut at the upcoming meeting, amid signs of a moderating labor market and cooling inflation.

They acquired a net 6.36 billion worth of U.S equity funds during the week, after a net 8.82 billion worth of additions in the previous week per LSEG Lipper data.

Futures markets predict a 96.7 chance that the U.S. Federal Reserve would reduce rates by a quarterpoint at its Dec. 1718 meeting to support a cooling labor market with about 4.2 unemployment rate in November.

U.S. largecap and smallcap equity funds experienced strong demand, attracting inflows of 2.33 billion and 2.12 billion respectively. Meanwhile, multicap funds garnered 958 million in net purchases, while midcap funds saw outflows of 144 million.

In parallel, investors divested 1.22 billion from sectoral funds in the most significant weekly outflow since September 25, with healthcare, consumer discretionary, and financial sectors experiencing liquidations of 898 million, 584 million, and 299 million, respectively.

U.S. bond funds saw a net 4.15 billion worth of purchases during the week, extending a buying trend into the 28th consecutive week.

U.S. shorttointermediate investmentgrade funds garnered 2.95 billion, the largest inflow in three weeks. Additionally, general domestic taxable fixed income and loan participation funds drew substantial inflows of…