Global equity funds pulled in $44.1 billion in the week to September 25, their largest weekly net purchase since July 8, snapping a two-week outflow streak. Artificial-intelligence optimism and a pullback in oil prices outweighed a sharp jump in government bond yields, with US funds leading the rebound.
Investors bought a net $44.1 billion of global equity funds in the week to September 25, LSEG Lipper data showed — the largest weekly net purchase since July 8. The buying snapped a two-week selling streak, as enthusiasm around artificial intelligence and a pullback in oil prices outweighed a sharp rise in government bond yields.
AI optimism drives inflows
Demand for technology funds was buoyed by strong consumer uptake of Meta's Muse agent, which topped US app download rankings. Record South Korean exports in the first 20 days of September, driven by surging semiconductor shipments, also reinforced optimism around chip demand. Goldman Sachs strategists said this week that AI investment is driving almost half of S&P 500 earnings-per-share growth this year.
Technology funds attracted $5.29 billion, the largest weekly net inflow since July 29. Investors also added $804 million to healthcare funds and $492 million to consumer discretionary funds.
US leads as yields hit a 22-year high
US equity fund inflows surged to a three-month high of $37.6 billion during the week. European and Asian equity funds also recorded net purchases of $2.26 billion and $2.21 billion, respectively.
The rebound came even as a selloff in government debt pushed borrowing costs sharply higher. The 30-year US Treasury yield climbed to a 22-year high of 5.5016% on Thursday, as stronger economic data and expectations of further Federal Reserve tightening drove investors to reassess the outlook for interest rates.
Gold keeps drawing inflows
Gold and other precious metals funds attracted $885.6 million, their 10th weekly inflow in the past 11 weeks. Money market funds, meanwhile, recorded net sales of $605 million for a second consecutive week.
Source: Economy News
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