Sustained AI optimism and softer US inflation data spurred investor risk appetite, driving $34.76 billion in net inflows into global equity funds in the week ending September 30 (LSEG Lipper).
📌 Key Market Flows & Critical Figures:
- Regional Stock Inflows:
- US Funds: Attracted $20.6 billion in net purchases for a second straight week.
- Europe & Asia Funds: Pulled in $6.19 billion and $6.16 billion, respectively.
- Emerging Market Funds: Faced outflows of $1.37 billion (4th consecutive week).
- Massive AI Capex Outlook: Goldman Sachs projects capital expenditure by major US hyperscalers to hit ~$800 billion in 2026 and rise to $1.1 trillion in 2027, anchored by strong revenue backlogs and cloud growth.
- Sector Rebalancing: Tech funds saw $2.63 billion in net outflows after a 3-week buying spree, while investors rotated into financial (+$1.13B) and utility funds (+$468M).
- Fixed Income & Cash Shifts:
- Bond Funds: Captured $4.76 billion in net inflows, led by short-term (+$5.43B) and government bonds (+$4.13B).
- Money Market Funds: Suffered $116.52 billion in net outflows—the largest weekly withdrawal since April.
A softer August US inflation reading eased pressure on the Federal Reserve, keeping equity demand resilient even as bond yields rose and money market cash exited to pursue yield.