AI Optimism Drives Global Equity Fund Inflows to Three-Week High

Global equity funds attracted $49.23 billion in net inflows during the week ending July 8, their strongest weekly performance in three weeks, as investor confidence improved on continued demand for artificial intelligence technologies and easing expectations of further U.S. interest rate hikes.

According to LSEG Lipper data cited by Reuters, U.S. equity funds led with $24.97 billion in inflows. European funds attracted $13.67 billion, while Asian funds added $6.95 billion.

Technology remained the biggest beneficiary, drawing $11.49 billion, up from $8.88 billion the previous week. Investors also added money to financial and industrial funds, reflecting growing confidence across several sectors.

The renewed interest followed stronger-than-expected June manufacturing data, which pointed to sustained demand for AI-related products, including semiconductors and computing hardware. Second-quarter earnings expectations also remained strong, with the technology sector projected to deliver 54.2% year-over-year profit growth, based on LSEG estimates.

Bond funds also attract fresh capital

Global bond funds recorded $31.34 billion in inflows, their largest weekly intake since at least 2019. Short-term bond funds, euro-denominated bond funds, corporate bond funds, and government bond funds all posted solid gains.

Money market funds also attracted $83.76 billion, their strongest weekly inflow since early June, suggesting many investors are still keeping cash available while adding exposure to risk assets.

Meanwhile, precious metals funds recorded an eighth straight week of outflows, while emerging market equity funds extended their losing streak to 11 consecutive weeks.

Why crypto investors are paying attention to stock fund flows

Global equity fund flows are often one of the first signs that investor confidence is changing. When billions of dollars move into stock funds, it usually suggests investors are becoming more comfortable taking on risk instead of keeping money in cash or defensive assets. Crypto markets have frequently benefited when that sentiment improves.

During major AI-driven rallies led by companies such as Nvidia, capital first flowed into technology stocks before Bitcoin and other digital assets also gained momentum. The same pattern was visible after the launch of U.S. spot Bitcoin ETFs, when institutional investors increased exposure to both technology and crypto-related investments.

This week’s figures do not guarantee that cryptocurrencies will follow equities higher. However, the combination of stronger equity inflows, rising technology investment, and continued interest in AI gives crypto investors another indicator to watch. If confidence continues to build across financial markets, digital assets could also see renewed demand from investors willing to increase their exposure to higher-risk assets.

Previously, BlackRock launched a new Nasdaq-100 ETF, giving investors another way to gain exposure to large-cap technology companies as demand for AI-related stocks remains strong. The fund began trading with a net asset value of $24 per share.