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AI Surge Fuels Record Investor Demand for Stocks
10 Jul
Summary
- Global equity funds saw their largest weekly inflow in three weeks.
- Strong AI-linked product demand and cooling Fed rate hike hopes boosted markets.
- Technology sector earnings are forecast to grow over 54% year-on-year.
Global equity funds experienced their largest weekly inflow in three weeks, drawing $49.23 billion by July 8. This surge was primarily fueled by strong investor appetite for AI-related technology products and diminishing expectations of further Federal Reserve interest rate hikes.
Demand for AI-linked items, including semiconductors, has been bolstered by positive manufacturing activity reports. The technology sector is anticipated to deliver substantial earnings growth, with forecasts indicating a 54.2% year-on-year increase in second-quarter net income.
In terms of regional investment, U.S. equity funds received the largest share of inflows in three weeks, with European and Asian funds also seeing significant investor interest. The technology sector alone attracted $11.49 billion in inflows, marking a notable increase from the prior week.
Beyond equities, global bond funds recorded their largest inflows since at least 2019, amounting to $31.34 billion. Money market funds also saw substantial weekly net purchases. Conversely, gold and precious metals commodity funds experienced their eighth consecutive week of outflows.
