AI-Driven Optimism Lifts Global Equity Funds to Second Straight Week of Inflows

Global equity funds attracted inflows for the second week in a row as optimism around AI investment and softer US inflation boosted investor demand for stocks. Equity funds recorded net inflows of $34.76 billion in the week through September 30, down from $44.31 billion in the previous week.

Risk appetite was supported by strong demand for memory chips used in AI applications, with Micron Technology forecasting quarterly revenue above estimates on Wednesday. Goldman Sachs also reported that the largest US hyperscalers are on track to spend about $800 billion on capital expenditure in 2026, with spending expected to rise to $1.1 trillion in 2027.

The Commerce Department's report on US inflation showed prices rose less than expected in August, reducing the urgency for the Federal Reserve to raise rates again in October. Investors made net purchases of $20.6 billion in US equity funds for a second consecutive week, with European and Asian equity funds also recording net inflows.