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Global equity funds recorded significant weekly inflows as investor sentiment improved, driven by a strong rally in artificial intelligence (AI) stocks. The AI sector, which includes major tech companies like NVIDIA and Microsoft, saw heightened demand amid optimism about long-term growth potential and corporate earnings upgrades. This trend pushed broader equity indices such as the S&P 500 and NASDAQ to record highs, with AI-related ETFs attracting over $2.3 billion in new capital during the week.
The surge in AI-driven investments reflects growing confidence in technology stocks as a safe haven amid macroeconomic uncertainty. Traders are positioning for sustained momentum in AI infrastructure, cloud computing, and semiconductor demand, which could outperform other sectors in the near term. However, market participants are also monitoring valuations to avoid overexposure to speculative assets.
For Gulf investors, the AI rally underscores the importance of diversifying portfolios into high-growth tech sectors. Key risks include regulatory scrutiny of AI advancements and potential earnings shortfalls. Traders should watch upcoming earnings reports from major AI firms and central bank policy decisions for directional clues.
