U.S. equity funds drew strong inflows in the week to March 25 as hopes for de-escalation in the Middle East lifted sentiment after U.S. President Donald Trump postponed an attack on Iranian energy infrastructure and proposed a deal to end the war. Investors poured a net $37.24 billion into U.S. equity funds, the largest weekly inflow since mid-November 2024, snapping a three-week run of net selling, LSEG Lipper data showed. However, the tech-heavy Nasdaq Composite fell more than 2% on Thursday as Iran continued to deny any talks with the U.S., deepening doubts over a swift resolution to the nearly one-month-long conflict. Investors bought U.S. large-cap funds for the first time in seven weeks, adding a net $45.07 billion. Mid-cap and small-cap funds saw net outflows of $2.15 billion and $1.24 billion, respectively.