Investors poured $20.6 billion into U.S. equity funds in the week through Sept. 30 while pulling $41.36 billion from money-market funds, a sharp shift that suggests cash is starting to rotate back toward risk assets.
The equity inflow marked a second consecutive positive week, according to Reuters, with large-cap funds accounting for nearly all of the demand at $19.33 billion. At the same time, money-market funds posted their third weekly outflow in four weeks.
The timing is notable because investors are moving back into stocks even with long-term Treasury yields still above 5% and the S&P 500 already up roughly 12% in 2026.
AI Optimism Is Winning Against Yield Pressure
The biggest support remains artificial intelligence.
Strong AI-linked earnings and demand forecasts have kept investors willing to add broad equity exposure despite historically expensive borrowing costs. Micron’s recent outlook reinforced expectations that spending on AI memory and infrastructure is still accelerating.
That continues a pattern Coinpaper highlighted when AI stocks kept the S&P 500 resilient even as Treasury yields climbed above 5%.
This Is a Sharp Reversal From August
Only about a month ago, the flow picture looked completely different.
Investors pulled $22.3 billion from U.S. equity funds in late August as large-cap selling accelerated and concerns around Fed policy and Treasury yields increased. That $22.3 billion equity-fund withdrawal now stands in stark contrast to the latest $20.6 billion inflow.
The shift does not mean investors are abandoning fixed income. U.S. bond funds still attracted $6.45 billion, including $4.3 billion into government and Treasury strategies.
