Global equity funds have demonstrated robust appeal, pulling in net inflows of $34.76 billion during the week ending September 30, according to data compiled by LSEG Lipper. This marks the second straight week of substantial capital allocations into worldwide stock markets, propelled by enduring investor optimism surrounding artificial intelligence (AI) capital expenditures and reassuringly soft U.S. inflation data that alleviated fears of aggressive monetary tightening by the Federal Reserve.
Market sentiment received a major boost from strong semiconductor and tech forecasts, alongside expectations that major U.S. hyperscalers will heavily ramp up AI-related infrastructure investments through the coming years. Regionally, the demand was widespread: U.S. equity funds captured $20.6 billion, while European and Asian equity funds reeled in $6.19 billion and $6.16 billion, respectively. Conversely, emerging-market equity funds faced continued headwinds, logging net outflows for the fourth consecutive week as investors recalibrated their global risk exposure amidst evolving macroeconomic conditions.
