AI-driven equity fund inflows surge to three‑week high as US inflation data looms

Global equity funds recorded a net inflow of $49.23 billion in the week to July 8, the largest in three weeks, driven by strong investor demand for AI‑related technology products. The surge was led by U.S. equity funds, which attracted $24.97 billion, while European and Asian funds added $13.67 billion and $6.95 billion respectively. The technology sector alone saw $11.49 billion of new money, up more than a quarter from the prior week, reflecting optimism about AI‑sector earnings and robust manufacturing activity.

At the same time, markets are closely watching U.S. consumer price index (CPI) and other macro data, as renewed hostilities between the United States and Iran have pushed crude oil prices above $77 a barrel and heightened risk aversion. Analysts note that the AI capital loop – a trillion‑dollar cycle of funding labs, cloud services and chip makers – continues to attract capital, linking the AI optimism with broader market trends. The combination of AI‑driven fund inflows and geopolitical volatility underscores the mixed forces shaping investor sentiment this week.