Global equity funds draw inflows for second week as AI optimism holds

Global equity funds attracted net inflows of $34.76 billion for the second week in a row, driven by optimism around AI investment and softer US inflation. This trend was supported by strong demand for stocks, despite rising bond yields. The optimism was further reinforced by Micron Technology's forecast of quarterly revenue above estimates, signaling strong demand for memory chips used in AI applications.

Goldman Sachs also noted that the largest US hyperscalers are expected to invest about $800 billion in capital expenditure in 2026 and potentially rise to $1.1 trillion in 2027, driven by strong revenue backlogs and a supply-constrained environment.

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