Global equity funds: third consecutive week of inflows during AI-dip

Investors buy the tech dip for the third consecutive week - a sign of resilience in the AI thesis after the June sell-off.

The fact

According to Reuters/Lipper data reported by Economic Times on July 6, 2026, global equity funds recorded a third consecutive week of net inflows, primarily driven by US technology stocks and the AI narrative. Following the June sell-off (Mag7: -$2.3 trillion in cumulative market capitalization, see pub #883 on Burry), the incoming flows reflect institutional rebalancing: the "buy the dip" on the AI trade remains active.

Our analysis

Three signals are combining. (1) Dovish June NFP ~147K (pub #863) which brought the probability of a FOMC July pause to 55% on the CME FedWatch. (2) Q2 results of Mag7 at the end of July, a binary catalyst: either validation of AI capex or further correction. (3) Intra-sector rotation towards AI industrials - Foxconn +40% Q2 revenue (Economic Times, July 6), Diamond Power +10% on Hyderabad data center orders (Economic Times, July 6). Funds are hedging duration but not leaving the theme. Notable divergence with Bitcoin ETF flows (-$8.95 billion May-June, pub #869): conviction in AI stocks remains stronger than crypto conviction in the same dovish macro environment.

To watch

• Q2 results of Mag7 at the end of July (MSFT 24/07, GOOGL 24/07, META 30/07, NVDA 27/08).
• June CPI published mid-July.
• FOMC 29-30 July, BoJ 30-31 July - double catalyst.