AI Optimism Drives Global Equity Fund Inflows to Second Straight Week

Investors continued to show optimism towards stocks for the second week in a row, despite rising bond yields. Global equity funds attracted $34.76 billion in inflows from September 23-30, down slightly from the previous week's $44.31 billion.

The main driver of this trend is the growing demand for AI-related investments. Micron Technology reported stronger-than-expected quarterly revenue on Wednesday, and Goldman Sachs estimates that US hyperscalers will spend approximately $800 billion on capital expenditures in 2026, with spending expected to rise to $1.1 trillion by 2027.

A Commerce Department report showed that US inflation was lower than expected in August, which may reduce the Federal Reserve's urgency to raise interest rates again in October. This sentiment contributed to investors making net purchases of $20.6 billion in US equity funds for a second consecutive week.