Money Market Funds Hit Record $8.29 Trillion as Trump-Era Stock Rally Faces Skepticism

3 articles · Updated · The Globe and Mail · Sep 8

$8.29 trillion sat in U.S. money market funds in the first quarter, a record that points to investors favoring safety over equities despite strong stock gains under Donald Trump.
Six Federal Reserve rate cuts between September 2024 and December 2025 should have reduced money funds' appeal, yet assets kept climbing even as fixed-income yields fell.
Since mid-2022, money fund assets have surged 65%, while the Dow, S&P 500 and Nasdaq have risen 22%, 28% and 34% in Trump's second term through Sept. 2.
Rich valuations and AI-driven exuberance appear to be keeping cash on the sidelines, with the market entering 2026 at its second-priciest level in nearly 156 years.
Past spikes in money market balances have often preceded economic or market downturns, including before the financial crisis and the COVID-19 crash.

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