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Global equity funds recorded their eighth consecutive weekly inflow as artificial intelligence (AI) advancements drove a rally in technology stocks. Investors poured $12.5 billion into global equity funds in the latest week, with tech sectors leading gains due to breakthroughs in generative AI and increased corporate investments in AI infrastructure. Major indices like the Nasdaq Composite rose 2.3% amid strong earnings from tech giants like Microsoft and NVIDIA, which reported record revenue from AI-related products.
This trend signals growing investor confidence in AI-driven growth narratives, particularly in the tech sector. Traders are closely monitoring AI adoption metrics and corporate spending plans, which could extend the rally into 2024. The sustained inflows also highlight a shift in capital allocation toward innovation-driven sectors, contrasting with underperformance in traditional energy and industrial stocks.
For markets, the focus will remain on AI development timelines and regulatory responses. Investors should watch upcoming earnings reports from tech firms and central bank policies, which could influence valuation multiples. The Nasdaq and S&P 500 are likely to remain focal points as AI momentum continues to shape market dynamics.
