Global equity funds attract $44.1 billion amid AI optimism — Cyprus Mail

According to the Cypriot publication Cyprus Mail, global equity funds recorded net inflows of $44.1 billion in the week through September 25, ending a two-week streak of outflows. This was the largest weekly net inflow since July 8, according to LSEG Lipper data.

Investor interest in equities strengthened due to optimism surrounding artificial intelligence and lower oil prices. These factors outweighed the impact of a sharp rise in government bond yields.

Demand for technology funds

Technology sector funds attracted $5.29 billion, the largest weekly net inflow since July 29. Optimism over demand for semiconductors was also supported by record South Korean exports in the first 20 days of September, driven by increased chip shipments.

Goldman Sachs strategists said this week that investment in artificial intelligence accounts for nearly half of the growth in earnings per share of S&P 500 companies this year. In addition to technology funds, investors put $804 million into healthcare funds and $492 million into consumer cyclical funds.

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Regional flows and bonds

U.S. equity funds attracted $37.6 billion during the week, the highest level in three months. Net inflows into European equity funds amounted to $2.26 billion, while Asian funds received $2.21 billion.

Meanwhile, the yield on 30-year U.S. government bonds reached 5.5016% on Thursday, the highest level in 22 years. The sell-off in government debt took place amid stronger economic data and expectations of further monetary tightening by the Federal Reserve.

Global bond funds attracted $9.68 billion after a modest outflow of $73.58 million in the previous week. At the same time, $1.47 billion was withdrawn from government bond funds. Gold and other precious metals funds received $885.6 million, marking the tenth weekly inflow in the past 11 weeks.