Tech Stocks See Record Weekly Inflow of $8.7 Billion By

Tech Stocks See Record Weekly Inflow of $8.7 Billion By
Tech Stocks See Record Weekly Inflow of $8.7 Billion By

Global funds investing in stocks received a substantial $25.6 billion boost in the week ending June 12, the highest amount since March, according to a Bank of America report released Thursday .

Funds specializing in technology came out on top with an unprecedented weekly increase of $8.7 billion, suggesting a trend that Bank of America analysts described as a “full adoption of investments in artificial intelligence.”

US stocks recorded inflows for the ninth consecutive week, to the tune of $20.4 billion. In contrast, European stocks suffered withdrawals for the fifth consecutive week, with a total of $1 billion leaving those markets.

Financial strategists have noted that while there is considerable interest in AI-related investing, there are concerns about the risks of concentrating too much investment in a small number of stocks. They stressed that the investment strategy heavily focused on Nvidia was “once again supported by the weakening of another alternative to American technology stocks, particularly in Europe”.

Emerging market stocks received additional investment for the third week, with an increase of $1.6 billion, and Japanese stocks also saw an increase in investment, with $600 million.

Bond funds also performed well, with an increase in investments totaling $6.4 billion for the 26th consecutive week. High-credit quality bonds attracted $5 billion, marking their 34th consecutive week of increased investment, while bonds issued by the U.S. government saw a $1.2 billion increase for the seventh week consecutive.

However, bonds with higher risk and potentially higher returns saw a drop in investment, with $200 million leaving these funds, and emerging market debt also saw withdrawals for the second week, with $500 million of dollars withdrawn from these investments. Bank loans also saw a decline in investment, with $300 million withdrawn.

Beyond the tech sector, U.S. growth-focused funds also had a record week, attracting $11.9 billion. On the other hand, other sectors experienced significant withdrawals. For example, funds that invest in short-term money market instruments saw a notable decline of $15.8 billion, funds that invest in cryptocurrencies saw withdrawals of $400 million, and funds that invest in invest in gold saw a drop of $300 million.

In terms of regional investments, China stood out with an increase of $1.3 billion, representing the largest biweekly increase since February, with a total of $3.3 billion. This increase in investment contrasts sharply with ongoing difficulties in European markets and suggests a shift in investor sentiment towards markets that appear more favorable.

This article was produced and translated with the help of Artificial Intelligence and reviewed by an editor. For more information, please see our terms and conditions.



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