Global Equity Fund Inflows Reach $64.3 Billion as U.S. Stocks Reaccelerate, Goldman Sachs Says
Global equity and bond mutual funds, along with investment-like products, recorded net inflows in both equities and bonds on a weekly basis, according to the research note.
Global equity and bond mutual funds, along with investment-like products, recorded net inflows in both equities and bonds on a weekly basis, according to the research note.
Equity-fund net inflows expanded to $64.3 billion, led by U.S. funds, while Europe recorded net outflows. In fixed income, short-duration bonds and inflation-protected bonds continued to provide support, while emerging-market debt denominated in both local and foreign currencies recorded net outflows.
In cross-border foreign-exchange flows, demand was strongest for the U.S. dollar, South Korean won and British pound.
The note says cross-border flows into U.S. equities reaccelerated after stagnating in the first half of 2025. It attributes the improvement to the AI boom, which has increased the relative appeal of U.S. assets and moderated selling related to diversification.
The note’s stated chain of reasoning is: the AI boom increases the appeal of U.S. equities, global funds flow into the United States, and the dollar strengthens. It identifies the $64.3 billion in equity-fund inflows and U.S. leadership as key data points.
The note says doubts about the returns on AI investment are a significant risk to expectations for modest dollar appreciation. It also says investors should watch for potential deviations in the foreign-exchange impact of AI-return risks; under expectations for a stronger dollar, emerging-market currencies could come under pressure.
In its market framing, the note describes the flow acceleration as supportive for U.S. equities and short-term fund flows as supportive for the dollar. However, doubts about AI-investment returns pose a significant risk to the dollar. It says current inflows into U.S. equities already partly reflect optimism about AI, while the growing skepticism warrants caution.
The note identifies three potential catalysts: next week’s global fund-flow data; disclosures by leading AI companies about the returns on their capital expenditures; and Federal Reserve policy signals affecting the dollar.
Equity-fund net inflows expanded to $64.3 billion, led by U.S. funds, while Europe recorded net outflows. In fixed income, short-duration bonds and inflation-protected bonds continued to provide support, while emerging-market debt denominated in both local and foreign currencies recorded net outflows.
In cross-border foreign-exchange flows, demand was strongest for the U.S. dollar, South Korean won and British pound.
The note says cross-border flows into U.S. equities reaccelerated after stagnating in the first half of 2025. It attributes the improvement to the AI boom, which has increased the relative appeal of U.S. assets and moderated selling related to diversification.
The note’s stated chain of reasoning is: the AI boom increases the appeal of U.S. equities, global funds flow into the United States, and the dollar strengthens. It identifies the $64.3 billion in equity-fund inflows and U.S. leadership as key data points.
The note says doubts about the returns on AI investment are a significant risk to expectations for modest dollar appreciation. It also says investors should watch for potential deviations in the foreign-exchange impact of AI-return risks; under expectations for a stronger dollar, emerging-market currencies could come under pressure.
In its market framing, the note describes the flow acceleration as supportive for U.S. equities and short-term fund flows as supportive for the dollar. However, doubts about AI-investment returns pose a significant risk to the dollar. It says current inflows into U.S. equities already partly reflect optimism about AI, while the growing skepticism warrants caution.
The note identifies three potential catalysts: next week’s global fund-flow data; disclosures by leading AI companies about the returns on their capital expenditures; and Federal Reserve policy signals affecting the dollar.