US stocks draw record $119 billion in weekly fund inflows on Iran deal

US equity funds pulled in a record $119.2 billion in a single week as the Iran war ended and AI spending surged.

US equity funds attracted a record $119.2 billion in the week through June 17, driven by the conclusion of the Iran war and surging AI infrastructure spending, according to Bank of America strategists citing EPFR Global data.

"The scale of inflows reflects a market that is pricing in lower geopolitical risk and higher AI-driven productivity simultaneously," said Michael Hartnett, chief investment strategist at Bank of America.

Technology funds absorbed $19.2 billion, also a weekly record, as investors piled into Amazon, Meta Platforms and Alphabet as they ramp up massive AI data center buildouts. Mid-cap funds saw a record $19.9 billion in inflows, while small-cap funds attracted $12.3 billion, the second-highest weekly total on record, showing that risk appetite extended well beyond mega-cap tech.

The $119.2 billion weekly haul puts US equity funds on track for a record $739 billion in full-year inflows, according to BofA. But strategists warned that political risks could upend the rally: a Republican loss of Senate control in November or a failure by President Donald Trump's approval rating to rebound by September could trigger a sharp reversal.

Tech and AI Drive Record Demand

The technology sector's $19.2 billion weekly inflow reflects an investor base increasingly convinced that AI monetization is accelerating. Amazon, Meta and Alphabet have committed hundreds of billions in capital expenditures to AI infrastructure, creating a self-reinforcing cycle: higher capex drives revenue growth, which justifies further investment.

The supply side of the equity market is also setting records. SpaceX completed the largest initial public offering in history on June 14, raising $75 billion. Anthropic and OpenAI are preparing their own IPOs, while Alphabet, Meta and Oracle are selling tens of billions of dollars in stock to fund AI spending. The question for investors is whether demand can keep pace with this unprecedented supply.

Europe Left Behind as Capital Rotates

European equity funds recorded their 10th consecutive week of outflows, a stark reversal from the early stages of the Iran conflict when capital rotated toward European defense and energy stocks. The divergence shows how decisively global capital is favoring US equities, particularly technology names with AI exposure.

The Nasdaq 100 has gained 24% this year, while the S&P 500 is up 9.6%. US household stock wealth has increased by $6 trillion in 2026, according to BofA data.

Hartnett's team flagged two political triggers that could disrupt the rally. If Republicans lose control of the Senate in the November midterm elections, the strategists expect a simultaneous selloff in stocks, a drop in Treasury yields and a weaker dollar. Separately, if Trump's approval rating fails to recover by September, "bullish sentiment will become anxious," Hartnett wrote.

This article is for informational purposes only and does not constitute investment advice.