AI-Driven Surge: Global Equity Funds See Major Inflows as Tech Expectations Rise

Global equity funds experienced their largest weekly inflow in three weeks, driven by strong demand for AI-linked technology products and cooling expectations for Federal Reserve rate hikes. The inflows totaled $49.23 billion, with a notable interest in U.S., European, and Asian funds, particularly in the technology sector.

In a notable movement in the financial markets, global equity funds experienced a surge in inflows, marking their largest weekly intake in three weeks. This trend, observed up to July 8, was fueled by a robust demand for AI-linked technology products, as well as reduced expectations for Federal Reserve rate hikes.

According to LSEG Lipper data, these funds attracted a net inflow of $49.23 billion. Particularly strong interest was directed towards U.S. equity funds which brought in $24.97 billion. This was complemented by $13.67 billion and $6.95 billion inflows into European and Asian funds, respectively.

The technology sector stood out, garnering significant attention with $11.49 billion in inflows, reflecting a more than 25% increase from the previous week. Meanwhile, financial sectors and industrials also recorded notable interest, as global bond funds saw their largest inflows since 2019.