Investors Bet Big on Tech as AI Echoes Boom

Global equity funds attracted inflows for the third consecutive week, signaling investor confidence in technology stocks buoyed by AI advancements. Despite a market selloff, tech sector investments flourished, while U.S. equity funds experienced outflows. Meanwhile, global bond funds enjoyed significant inflows, and emerging markets suffered continuous withdrawals.

Global equity funds saw a third-straight week of inflows as investors capitalized on a market dip to increase exposure to technology stocks. The optimism is driven by expectations of a sustained AI-driven rally. In the week through June 10, investors bought a net $3.32 billion in global equity funds, according to LSEG Lipper data.

Mark Haefele, chief investment officer at UBS Global Wealth Management, advised that those under-invested in the AI sector consider increasing their stakes, as demand for AI remains strong. Despite a downturn that saw the MSCI World Index drop 4.8%, signs of an Iran-U.S. peace deal helped partial recovery.

European and Asian funds recorded significant inflows, while U.S. funds had outflows for the first time in three weeks. Emerging markets faced pressure with substantial equity and bond fund outflows. In contrast, tech funds continued to draw interest, adding $7.05 billion in inflows during their tenth consecutive positive week.