Global equity funds received $43.15 billion during the week of July 2 which represented their largest inflow since November as investors pursued artificial intelligence-related market gains according to LSEG Lipper data.
The majority of the investment inflow came from U.S. stocks which received $31.6 billion because of positive market sentiment toward tech giants Nvidia and Micron Technology. The positive market sentiment toward AI chipmakers increased after Micron released its strong fourth-quarter forecast and Nvidia achieved its highest market value ever. The total inflow into European and Asian equity funds reached $9.31 billion and $552 million respectively.
The sector-specific funds received $3.72 billion in net inflows through their industrial ($1.26 billion) and technology ($1.2 billion) and financial ($760 million) sectors. The bond fund market maintained its winning streak through global fixed income vehicles which brought in $15.84 billion during their eleventh consecutive week of net gains.
Euro-denominated bond funds received $4.89 billion during their most successful period in three weeks. The corporate bond fund sector received $4.33 billion while short-term bond funds received $1.73 billion.
Investors maintained positive sentiment despite ongoing trade uncertainties and the approaching tariff deadline. The current market gains are driven by AI enthusiasm but equities face potential risks if geopolitical or trade tensions start to rise again. The continuous capital inflow indicates that risk appetite continues to be strong.
