Economy July 10, 2026 08:25 AM

Global Equity Flows Jump to Three-Week High on AI Optimism and Softer Fed Bets

Investors pour nearly $50 billion into global stocks as technology funds lead inflows and bond allocations also rise

By Jordan Park
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Global equity funds registered their largest weekly net inflow in three weeks in the period ending July 8, driven by strong demand for AI-related technology products and a decline in expectations for further Federal Reserve rate hikes. Technology funds led the move, even as bond and money-market allocations also saw sizable purchases.

Global Equity Flows Jump to Three-Week High on AI Optimism and Softer Fed Bets
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Key Points

  • Global equity funds saw $49.23 billion of net inflows in the week to July 8, the largest weekly inflow since June 17.
  • Technology funds led equity flows with $11.49 billion in purchases; U.S. equities accounted for $24.97 billion of overall inflows.
  • Fixed-income and cash products also attracted large allocations - global bond funds took in $31.34 billion and money market funds received $83.76 billion.

Global equity funds posted a sizable pickup in net new money in the week to July 8, attracting $49.23 billion and marking the biggest weekly inflow since the week of June 17, LSEG Lipper data showed. Two themes underpinned the appetite for risk: robust demand for AI-linked hardware and softer expectations for further Federal Reserve rate hikes.

Recent upbeat readings on June manufacturing activity were interpreted as evidence of strong demand for products tied to artificial intelligence - notably chips and computers - and that helped lift sentiment toward the technology sector. Analysts' mean estimates compiled by LSEG project the technology sector to deliver a 54.2% year-on-year increase in second-quarter net income, a forecast that further supported investor interest.

By geography, U.S. equity funds accounted for the largest portion of the weekly inflows, drawing $24.97 billion - the biggest U.S. weekly intake in three weeks. European equity funds attracted $13.67 billion, while Asian funds took in $6.95 billion.

Sector flows showed pronounced concentration in technology: technology funds recorded $11.49 billion of inflows, an increase of more than 25% from the $8.88 billion recorded the prior week. Other sectors also drew money, though on a smaller scale, with financials attracting $1.52 billion and industrials $789 million.


Fixed-income and cash allocations rose alongside equities. Global bond funds saw $31.34 billion of net inflows in the week - the largest weekly inflow for bond funds on record back to at least 2019, according to the data. Within bond categories, short-term bond funds captured $7.19 billion, euro-denominated bond funds $3.87 billion, corporate bond funds $2.92 billion and government bond funds $2.73 billion.

Money market funds experienced a very large weekly allocation, with investors placing $83.76 billion into these vehicles - the biggest weekly net purchase since the week of June 3.


Not all asset groups benefited. Precious metals commodity funds recorded an eighth consecutive week of outflows, totaling $372 million. Emerging-market data covering 28,884 funds indicated that emerging-market equity funds lost about $500 million in net outflows, marking an 11th straight weekly outflow. Within emerging-market fixed income, bond funds still posted net inflows of $1.66 billion for the week.

The week’s flow patterns reflect a mix of risk-on positioning toward AI-exposed technology names and continued demand for liquidity and shorter-duration fixed income. The data highlights both concentrated interest in technology and diversified investor demand across bond maturities and money-market instruments.

Risks

  • Precious metals commodity funds recorded an eighth consecutive weekly outflow totaling $372 million, signaling persistent investor aversion to the sector.
  • Emerging-market equity funds experienced about $500 million of net outflows in an 11th straight week, indicating continued weakness in EM equity demand.
  • Investor positioning could reverse if expectations about Federal Reserve rate moves change, which would affect flows into risk assets such as technology equities and into short-duration and corporate bond funds.

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