Global equity funds recorded their strongest weekly inflow in three weeks during the period ending July 8, as growing excitement over AI-driven technology products and fading fears of Federal Reserve rate hikes pushed investors toward riskier assets.
According to LSEG Lipper data, equity funds worldwide attracted a net $49.23 billion during the week — their biggest single-week haul since June 17.
Positive manufacturing reports for June pointed to robust demand for AI-related products such as chips and computers, helping fuel investor confidence heading into the week.
Expectations for strong earnings in the AI space also lifted market sentiment. Analysts’ estimates tracked by LSEG project the technology sector will report a 54.2% year-over-year increase in second-quarter net income.
Breaking down the numbers by region, U.S. equity funds took in $24.97 billion — also their strongest showing in three weeks. European funds attracted $13.67 billion, while Asian funds pulled in $6.95 billion.
Technology sector funds were a standout, drawing $11.49 billion in inflows — more than a quarter higher than the $8.88 billion recorded the prior week. Financial sector funds and industrial funds also saw meaningful inflows of $1.52 billion and $789 million, respectively.
Global bond funds posted their largest weekly inflow since at least 2019, bringing in $31.34 billion. Short-term bond funds led with $7.19 billion in net purchases, followed by euro-denominated bond funds at $3.87 billion, corporate bond funds at $2.92 billion, and government bond funds at $2.73 billion.
Money market funds also saw strong demand, with investors directing $83.76 billion into those accounts — the largest weekly net purchase since June 3.
Not all asset classes fared well. Gold and other precious metals commodity funds posted an eighth straight week of outflows, shedding $372 million.
In emerging markets, data covering 28,884 funds showed equity funds lost roughly $500 million, extending their losing streak to 11 consecutive weeks of outflows. Emerging-market bond funds, however, continued to attract interest, recording $1.66 billion in net inflows.
