Global equity funds recorded their largest weekly net inflow since early July for the week ending September 25, snapping a two-week selling streak as AI-driven market optimism and falling oil prices offset rising government bond yields.
Key Capital Flows & Sector Breakdown:
- Global Equity Demand: Investors injected a net $44.1 billion into global equity funds (led by $37.6B into U.S. funds, $2.26B into European funds, and $2.21B into Asian funds).
- Tech Sector Leadership: Tech funds attracted $5.29 billion (largest weekly inflow since July 29), fueled by viral adoption of Meta’s Muse agent, surging South Korean semiconductor exports, and Goldman Sachs data showing AI drives nearly 50% of S&P 500 EPS growth this year.
- Bond & Money Market Dynamics: Global bond funds gathered $9.68 billion in net inflows (short-term bonds +$2.5B), while government bond funds saw $1.47 billion in net outflows as the U.S. 30-year Treasury yield surged to a 22-year high of 5.5016%.
- Commodities & Emerging Markets: Gold and precious metals funds secured $885.6 million (10th inflow in 11 weeks). Emerging market bond funds reversed prior losses with $548.99 million in net purchases.
Strong institutional confidence in AI growth fundamentals continues to anchor equity markets against elevated borrowing costs! 📊💻🌍