Key facts
- Global equity funds saw inflows of $44.1 billion in the week ended September 25.
- This marks the largest weekly net purchase for global equity funds since July 8.
- Demand for technology-sector funds was boosted by strong consumer uptake of Meta's Muse agent.
- Record South Korean semiconductor exports reinforced optimism around chip demand.
- Goldman Sachs strategists noted AI investment is driving nearly half of S&P 500 earnings-per-share growth this year.
- US equity fund inflows reached a three-month high of $37.6 billion during the week.
Global equity funds attracted $44.1 billion in the week ending September 25, ending a two-week outflow streak, as optimism surrounding artificial intelligence and a pullback in oil prices overshadowed a sharp rise in government bond yields. This was the largest weekly net purchase for global equity funds since July 8, according to LSEG Lipper data.
Demand for technology-sector funds was bolstered by strong consumer adoption of Meta's Muse agent, which topped US app download rankings. Record South Korean exports in the first 20 days of September, driven by surging semiconductor shipments, also reinforced optimism around chip demand. Goldman Sachs strategists noted this week that AI investment is driving nearly half of S&P 500 earnings-per-share growth this year.
The resurgence in equity demand occurred even as a selloff in government debt pushed borrowing costs higher. The 30-year US Treasury yield climbed to a 22-year high of 5.5016% on Thursday, as stronger economic data and expectations of further Federal Reserve tightening led investors to reassess the interest rate outlook.
US equity fund inflows surged to a three-month high of $37.6 billion during the week. European and Asian equity funds also recorded weekly net purchases of $2.26 billion and $2.21 billion, respectively. Among sectoral funds, technology funds attracted $5.29 billion, the largest weekly net inflow since July 29. Investors also added $804 million to healthcare funds and $492 million to consumer discretionary funds.
Global bond funds recorded net weekly inflows of $9.68 billion. Short-term bond funds and loan-participation funds posted notable inflows of $2.5 billion and $1.4 billion, respectively. Government bond funds, however, registered net outflows of $1.47 billion. Investors continued to pull money from money market funds for a second consecutive week, with net sales totaling $605 million.
In the commodity fund segment, gold and other precious metals funds attracted $885.6 million, marking their 10th weekly inflow in the past 11 weeks. Investors also recorded net purchases of $89.26 million in energy funds. In emerging markets, investors poured $548.99 million into bond funds, reversing net sales of $158.22 million in the previous week. Equity funds also recorded a marginal weekly inflow of $29.3 million after two consecutive weeks of outflows.