US equity funds attracted strong investor inflows of $11.83 billion during the week ended July 29, reversing a two-week streak of withdrawals as renewed confidence in artificial intelligence and robust earnings from major technology companies lifted sentiment, according to Reuters citing LSEG Lipper data. Largecap funds emerged as the biggest beneficiaries, drawing $11.57 billion in net inflows, the highest weekly purchase since June 24, while investors pulled $2.29 billion from mid-cap funds and $196 million from smallcap funds. The turnaround came after upbeat quarterly results from Microsoft and Amazon helped ease concerns over heavy AI-related capital expenditure, with Microsoft projecting stronger cloud revenue growth and Alphabet reporting a rise in advanced cloud orders that are yet to be recognized as revenue. Technology funds led the gains with $4.9 billion in inflows, their strongest weekly intake since July 8, while financial sector funds attracted $1.96 billion and consumer staples funds received $751 million.
Chip stocks experienced significant gains on Tuesday, August 4, with SanDisk leading the rally by surging as much as 8.2% to $1,394, followed by Intel shares rising 7.31% to $97.65, SK Hynix up 6.69% to $152.27, AMD jumping 6.08% to $514.09, and Micron shares gaining 5.42% to $874.5. Nvidia also traded 2.43% higher at $211.66, as reported by NDTV Profit. The rally in these stocks was led by SanDisk, surging as much as 8.2% to $1,394, followed by Intel shares, rising 7.31% to $97.65, SK Hynix, up 6.69% to $152.27, AMD jumped 6.08% to $514.09, while Micron shares 5.42% up at $874.5. The gains come amid improving broader market sentiment, as geopolitical uncertainties continue, with the S&P 500 touching a new all-time intraday high on Tuesday, rising 0.5%, while the Nasdaq Composite advanced 0.9% and the Dow Jones Industrial Average was up 1.4%. Investors are also focusing on AMD's quarterly results due after the market close, with the chipmaker's outlook expected to offer further clues on AI demand.
US markets experienced a significant rally on Friday as Microsoft and Amazon delivered strong earnings that drew investors back into the AI trade, with the Nasdaq Composite ending up 1.00% at 25,373.85 points, the S&P 500 gaining 0.70% to 7,489.81 points, and the Dow Jones Industrial Average rising 0.53% to 52,485.74 points. The rally was primarily driven by Microsoft's strong earnings performance, with the stock surging 15.51% following the company's fourth fiscal quarter results. Microsoft reported total revenue increased 18% year-over-year and EPS rose 23%, beating analyst estimates by more than 10%, while full-year Azure revenue surpassed $100 billion for the first time. The company's commercial cloud remaining performance obligations grew 84% year-over-year to $678 billion, approximately twice its annual revenue. Amazon followed with its strongest cloud growth in more than four years, reassuring investors eager for proof that massive AI spending is paying off, with the company's cloud services benefiting small and medium businesses implementing AI strategies.
US markets experienced a significant reversal on Friday as Federal Reserve officials pushed back against rate cut expectations, with three Fed policymakers who had dissented in favor of a rate hike at this week's meeting making their case publicly for higher rates. Dallas Federal Reserve President Lorie Logan stated that without "modest action in the near term," the US central bank will not be able to get inflation back on track to its 2% target, given a solid labor market that is strengthening and upside risks to price pressures. This hawkish commentary drove longer-dated Treasury yields to new multi-year highs, with the 10-year note yield rising 4.51 basis points to 4.708% and reaching 4.747% - the highest since January 2025, and the 30-year bond yield gaining 4.39 basis points to 5.2509% - the highest since mid-2007. Traders are now pricing in 69% odds of a rate increase at the Fed's September meeting, marking a significant shift from earlier expectations.
The number of stocks trading above a key technical level has reached a peak not seen in two years, according to reports from CNBC TV18. This technical development suggests a significant shift in market sentiment and investor positioning across various sectors. The large portion of names trading above this critical level indicates that investors are putting money to work in stocks other than those tied to the artificial intelligence trade. The current market rally, led by memory and semiconductor stocks, demonstrates how investment flows are moving away from AI-related stocks toward other sectors, representing a potential sign of broader market diversification as investors rotate capital into different opportunities. Around 71% of S&P 500 stocks have climbed above their 200-day moving averages, the highest level in two years, as reported by CNBC.
