Bank of America data shows that US technology funds recorded a net inflow of $14.3 billion in the week ending July 1, the second-highest weekly level on record, continuing the highly volatile flow pattern of the previous two weeks: the previous week saw an outflow of $9.3 billion, while two weeks prior, a record weekly inflow of $19.2 billion was recorded, indicating that funds are rapidly shifting within the technology sector, but the overall direction is still towards a return to normalcy.
Structurally, the four-week average inflow has risen to a record high of $9 billion, suggesting that the technology sector is shifting from "short-term trading-driven" to "sustainable fund allocation." Meanwhile, US overall equity funds recorded an outflow of $17.2 billion during the same period, the largest weekly withdrawal since March, indicating that funds are not withdrawing from the equity market, but rather concentrating on technology from broad-based indices.
