Global Equity Funds Attract Fresh Inflows as AI Optimism Supports Investor Demand
LONDON, United Kingdom, October 3, 2026, ZEX PR WIRE — Global equity funds attracted fresh money for a second consecutive week as investor optimism around artificial intelligence spending and softer U.S. inflation helped support demand for stocks despite a sharp rise in government bond yields.
Equity funds recorded net inflows of $34.76 billion in the week through Sept. 30, according to LSEG Lipper data. While that was below the $44.31 billion recorded the previous week, the continued inflows indicate that investors remained active in equities despite growing pressure from higher borrowing costs.
AI spending remains a major market driver
Investor interest continued to be supported by expectations for heavy spending on artificial intelligence infrastructure. Micron Technology’s latest forecast pointed to strong demand for memory chips used in AI applications, reinforcing expectations that technology companies and semiconductor suppliers could continue benefiting from the AI investment cycle.
Goldman Sachs estimated that the largest U.S. hyperscalers are on track to spend around $800 billion on capital expenditure in 2026, with consensus expectations pointing to approximately $1.1 trillion in 2027.
The scale of this investment has become increasingly important for equity markets because spending by large technology companies supports demand across semiconductor manufacturing, data centers, networking equipment and other parts of the technology supply chain.
Bond yields create a competing market signal
The equity inflows came despite continued pressure in global bond markets. U.S. Treasury yields recently reached multi decade highs, increasing the relative appeal of fixed income while also raising the discount rate applied to future corporate earnings.
U.S. equity funds attracted $20.6 billion during the week, while European and Asian equity funds recorded inflows of $6.19 billion and $6.16 billion, respectively.
However, technology specific funds experienced $2.63 billion in withdrawals after three consecutive weeks of buying. Investors instead added $1.13 billion to financial funds and $468 million to utility funds.
The flow data suggest that investors are not abandoning equities but are adjusting exposure across sectors as markets balance AI growth expectations against higher interest rates.
For investors heading into the final quarter of 2026, corporate earnings, AI capital expenditure plans, inflation data and central bank policy will remain important factors in determining whether equity demand can continue alongside elevated bond yields.
