Global equity funds pulled in $34.76 billion in the week through September 30, a second straight week of inflows driven by AI spending optimism and softer US inflation. US funds led the buying, while investors pulled money from technology funds and emerging markets.
Global equity funds attracted net inflows of $34.76 billion in the week through September 30, down from $44.31 billion the previous week, according to LSEG Lipper data. The two-week streak comes as optimism around AI spending and softer inflation data outweighed concerns over rising bond yields.
AI spending keeps driving demand
Micron Technology forecast quarterly revenue above estimates on Wednesday, signaling strong demand for the memory chips used in AI applications. Goldman Sachs said the largest US hyperscalers are on track to spend about $800 billion on capital expenditure in 2026, with consensus expecting that figure to rise to $1.1 trillion in 2027. The bank pointed to strong revenue backlogs and a supply-constrained environment as continuing to support investment, while cloud revenue growth among major providers accelerated sharply this year.
Meanwhile, a Commerce Department report on Wednesday showed US inflation rose less than expected in August, while July price pressures were more moderate than initially reported. That reduced the urgency for the Federal Reserve to raise interest rates again in October.
US funds lead, tech funds lag
Investors made net purchases of $20.6 billion in US equity funds for a second consecutive week. European and Asian equity funds also recorded net inflows of $6.19 billion and $6.16 billion, respectively.
Sectoral funds, however, posted net weekly outflows of $919.7 million as investors withdrew $2.63 billion from technology funds after a three-week buying streak. They bought $1.13 billion in financial funds and $468 million in utility funds.
Bonds, cash and emerging markets diverge
Global bond funds attracted $4.76 billion in inflows for a second consecutive week, substantially lower than $9.24 billion the previous week. Short-term and government bond funds still registered inflows of $5.43 billion and $4.13 billion, respectively, while high-yield bond funds saw outflows of $2.29 billion.
Money market funds posted net outflows of $116.52 billion, the largest weekly withdrawal since April 15. In emerging markets, equity funds recorded outflows of $1.37 billion for a fourth straight week, while investors also withdrew a net $1.75 billion from emerging-market bond funds, according to data covering 29,099 funds.
Source: Economy News
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