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Global Equity Funds Draw $22 Billion Before Late-Week Selloff

Investor buying backed by strong earnings plus AI optimism now faces pressure from rising bond yields as higher oil prices raise inflation worries.

Overview

  • LSEG Lipper data show global equity funds took in $22.01 billion for the week through Aug. 19 while U.S. equity funds alone drew $11.72 billion, their biggest weekly inflows since July 29.
  • The buying was driven by a strong earnings season, with roughly 90% of MSCI World companies reporting second-quarter results and combined net income rising about 39.7% year‑on‑year.
  • Markets reversed late in the week as higher government bond yields, a rally in oil and renewed inflation concerns triggered a selloff that left global stocks on course for their steepest weekly drop since mid‑July.
  • Investors balanced equity purchases with risk management moves by extending a 20‑week streak of net bond fund inflows totaling $15.42 billion and adding to gold and precious‑metals funds, while rotating into technology funds and pulling money from financials.
  • Attention now turns to Nvidia’s upcoming results for signals on AI infrastructure demand, a report that could steer where managers allocate money next and influence data‑centre spending and tech valuations.