US Equity Funds Draw $20.6B Weekly Inflow on AI Optimism, Cooling Inflation

US equity funds logged a second straight week of net inflows, pulling in $20.6 billion in the week through September 30, as sustained AI enthusiasm and a cooler-than-expected inflation reading offset rising Treasury yields, LSEG Lipper data showed. The inflow followed $37.49 billion the prior week. Continued AI demand pushed the Nasdaq Composite to record highs, even as 10-year Treasury yields hit 24-year peaks. Micron Technology on October 1 forecast revenue above estimates, signaling strong appetite for AI memory chips. A Commerce Department report the same day showed US inflation rose less than expected in August, easing pressure on the Federal Reserve to raise rates again in October. US large-cap equity funds attracted $19.33 billion, their second-largest weekly inflow in a quarter, while sectoral funds posted $4.1 billion in outflows, led by $3.79 billion in technology net sales. Bond funds drew $6.45 billion.