US Equities Spur Record Global Fund Inflows Since 2021 Amid Funding Squeeze

Global equity funds posted their largest weekly inflows in over five years as a share of AUM on June 30, led by strong US allocations. This risk-on surge coincides with S&P 500 synthetic equity funding costs surging past the 99th percentile, driven by retail leveraged ETF demand and semiconductor-related prime brokerage activity. Societe Generale noted the spike is seasonal but elevated, while HSBC highlighted supportive factors including a stronger dollar, easing geopolitical tensions, and falling oil prices. Broader funding markets remain stable with no systemic stress indicated.