U.S. equity funds drew $12.06 billion in inflows this week

Source Cryptopolitan

U.S. equity funds recorded net weekly inflows of $12.06 billion, reversing the two-week outflow momentum. The inflow was fueled by renewed investor confidence following Nvidia’s announcement to invest $100 billion in OpenAI.

Throughout the past two weeks, investors have pulled at least $39.91 billion from U.S. equities. Large-cap funds led this week’s reversal after introducing $16.94 billion into the Equity market, posting the strongest weekly inflows since April. Mid-cap funds, on the other hand, pulled $1.64 billion, while Small-cap funds removed $71 million from the market. 

Sectoral equity funds attract $407 million in net new investments

Sectoral equity funds attracted net new investments of $407 million this week, with the industrial sector receiving $1.11 billion. U.S. bond funds also gained $11.9 billion, marking the highest weekly inflow since February 2021. Short-to-immediate-term government and treasury bonds received $8.02 billion, while the general domestic taxable fixed income funds received $1.78 billion. Short-to-intermediate-investment-grade funds accumulated $1.69 billion this week.

U.S. money Market funds (MMF) attracted $26.71 billion, marking the fourth inflow in five weeks and showing steady movement. However, according to a Reuters report, global MMF investors pulled out $12.96 billion, recording an outflow for the second week.

The increased demand for Equity follows recent activities linked to technology supply chains and infrastructure. On Monday, Cryptopolitan reported that Nvidia revealed a plan to invest $100 billion, causing renewed confidence in the Equity market. The chip maker revealed that the funds will be used to support the construction of data centers powered by its chips, likely 4 to 5 million GPUs, with a 10-gigawatt capacity. CEO Jensen Huang described the initiative as monumental in size, saying the first phase will begin in Q2 2026 using its next-generation Vera Rubin system architecture.

NVIDIA’s stock surged to $183.85 on Monday after the announcement, adding at least $200 billion in market value within one hour. However, the stock has dropped, currently trading at $177.17 with a market cap of $4.3 trillion. The collaboration means that Nvidia will be the preferred supplier of chips and networking systems to OpenAI. 

Nvidia fuels a rise in net inflows into the equity market

Sam Altman revealed that OpenAI is struggling with infrastructure challenges amid plans to meet the rising demand of AI users, currently 700 million weekly users. Altman emphasized expanding data capacity while focusing on research and product development. OpenAI has already secured backing from investors including Microsoft, SoftBank, and Thrive Capital. Forge Global valued OpenAI at $500 billion. 

Across the world, global Equity funds attracted $28.96 billion in inflows this week, the largest since the past three weeks of outflows. The net inflow reversed the prior week’s $35.02 billion outflow. European and Asian Equity funds received net inflows of $10.73 billion and $4.12 billion, respectively. Sectoral funds recorded net inflows of $4.56 billion. The industrial sector received $1.65 billion, the financial industry received $1.45 billion, and the technology sector recorded $1.01 billion. Emerging markets recorded $2.65 billion in Equity funds, the sixth consecutive inflow.

Meanwhile, the global bond market saw a net inflow of $22.96 billion, the largest since 2022, while short-term funds received $10.1 billion this week. Euro-denominated and corporate bonds gained $2.3  billion and $1.95 billion, respectively.

The S&P 500 has recorded a drop of 0.3% over the past five days, trading at $6,639.22 at publication, with a YTD of 12.88%. On the other hand, the Dow Jones index has recorded a 0.72% rise over the past week, with a YTD of 8.78% showing an increase in investor confidence in the U.S. stock securities. Globally, the UK FTSE recorded a rise of 0.74% over the past week, with a YTD of 12.41%

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