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Bank of America clients became net buyers of U.S. stocks last week for the first time in more than a month, buying shares during the Aug. 5 “Black Monday” market crash and the subsequent recovery, according to a research note released Tuesday by a team of quantitative strategists led by Jill Carey Hall.

Last week's inflows from Bank of America clients were the 10th-largest since Bank of America began keeping data in 2008 and the first net inflow in nearly five weeks.

Bank of America's institutional investor clients led the buying of U.S. stocks last week, with such investors buying a net $5.8 billion of U.S. stocks, while hedge funds and retail investors sold stocks. Bank of America's corporate clients accelerated their buybacks last week, and the level of buybacks continued to be above typical seasonal levels.

From an industry perspective:

• Technology and communications services sectors saw the biggest weekly inflows, and it has also received the largest cumulative capital inflow among all sectors since the beginning of the year. The technology industry recorded capital inflows for the first time in four weeks.
• The financial sector is closely followed by the technology and communications services sectors, recorded the second largest capital inflow.
• The industrial sector received the biggest inflows since March.
• Bank of America clients sold energy, staples, real estate and utilities stocksAmong them, energy was sold for the third consecutive week, which is the longest selling cycle in recent times.

U.S. stocks experienced a huge shock last week, with the S&P 500 index experiencing its best and worst trading days since 2022 in the space of a week. It was a mixture of ice and fire, and in the end, it was roughly flat for the week.

Carey Hall said Bank of America's client flows tend to weaken in the fall months and expects stock markets to remain volatile ahead of the U.S. election.