Largest inflow into US equity funds in three weeks: Technology and interest rate expectations take the lead

According to LSEG Lipper data, in the week ending 8 July, US equity funds recorded a net inflow of 24.97 billion dollars, the highest level seen since 17 June. This rise was supported by strong profit expectations from technology companies and the easing of interest rate concerns by the US Central Bank (Fed).

With the second-quarter profit season approaching, markets are displaying an optimistic outlook towards the earnings of technology stocks. Analysts estimate that the average annual profit growth of large and mid-sized US technology firms will reach 40.8 percent. Driven by the strong demand for artificial intelligence products, the technology sector's 12-month profit expectations were also revised upwards by 4.2 percent in the last month.

This positive picture encouraged investors to make a massive investment of 9.71 billion dollars into technology funds within the same week. The developments reveal the strong confidence placed in the technology sector, both for the new profit season and artificial intelligence-driven growth expectations.