Equity Fund Surge: Tech Earnings Spark Global Inflows

Global equity funds surged to a three-week high, driven by strong tech sector earnings and AI enthusiasm, attracting $21.44 billion in a week. European funds led with $11.16 billion, while global bond funds saw $24.23 billion in inflows. Emerging markets faced equity fund divestments but gained in bond funds.

Investment in global equity funds reached a three-week peak as the tech sector delivered strong earnings and investor interest in artificial intelligence flourished. According to LSEG Lipper data, equity funds drew in $21.44 billion over the week by June 3, marking the highest surge since mid-May.

Tech giants Dell and HP reported extraordinary earnings, contributing to a major rally that pushed the MSCI World Index to an all-time high of 1,138.3. European funds led the surge, attracting $11.16 billion, while U.S. and Asian funds collected $7.43 billion and $760 million, respectively.

Meanwhile, bond funds saw continuous growth with $24.23 billion in inflows for the ninth straight week. In contrast, precious metals funds continued to experience outflows. Emerging markets endured a sixth week of equity fund divestment, although bond funds there gained modestly.