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Fund Flows Shift Toward Tech Stocks, Bonds and Cash on AI Optimism

Analyst upgrades for AI-related firms plus softer Fed-rate expectations explain heavy reallocations into technology, bond and money-market funds

Overview

  • Global equity funds took in about $49.2 billion in net inflows in the week to July 8, driven by concentrated purchases of U.S. and sector-specific tech funds.
  • U.S. equity funds attracted roughly $25.0 billion as investors raised exposure to large-cap technology names ahead of the earnings season.
  • Technology sector funds alone drew about $11.5 billion after analysts lifted near-term earnings forecasts tied to strong demand for AI products and services.
  • At the same time, global bond funds saw about $31.3 billion of inflows and money-market funds received roughly $83.8 billion, signaling active rebalancing into safer, liquid assets.
  • Emerging-market equity funds continued to see outflows of about $500 million, reflecting a regional split in sentiment that could affect capital availability for those markets.