Global equity funds hit 19-month inflow high on Iran deal, tech rally

Global equity funds drew approximately $55 billion in net inflows for the week ending June 17, fueled by the U.S.-Iran ceasefire deal and record tech sector buying.usnews
The Nasdaq Composite, S&P 500, and Russell 2000 all rallied Thursday, the last session before the Juneteenth holiday, with semiconductors surging to an all-time high.reuters
Risks persist as mine-clearing in the Strait of Hormuz could take weeks and the Fed has signaled openness to rate hikes later this year, according to NPR and Reuters.npr

US Stocks Hit Record Weekly Inflows as Iran Deal and Tech Rally Fuel Investor Optimism

Investors poured money into US equity funds at a historic pace in the week ending June 17, as a ceasefire agreement between the United States and Iran and a continued surge in technology stocks drew capital back into risk assets at levels not seen in more than a year.

Global equity funds attracted approximately $55 billion in net inflows during the week, their largest haul in 19 months, according to LSEG Lipper data, eclipsing the previous recent high of $48.72 billion set in the week ending April 22. US equity funds accounted for the bulk of the buying, with Bank of America strategists citing EPFR data showing record flows into American stocks and projecting annualized inflows of $739 billion for 2026. Technology sector funds attracted their largest weekly inflow on record, building on a streak that has seen tech dominate fund purchases for much of the year.usnews

Iran Deal Lifts Markets

The catalyst for the surge was the signing of a memorandum of understanding between Washington and Tehran, announced on June 15 and formally signed by week’s end, which committed both sides to a ceasefire and the reopening of the Strait of Hormuz. The deal, which includes provisions for Iran to immediately begin selling oil and fuel with sanctions waivers taking effect upon signing, eased months of geopolitical anxiety that had weighed on global markets since the US-Iran conflict escalated earlier this year.reuters

On June 18 — the last trading day before the Juneteenth holiday — US markets rallied sharply. The Nasdaq Composite climbed 1.91%, the S&P 500 rose 1.08%, and the Dow Jones Industrial Average gained 0.14%, according to Reuters. The Philadelphia Semiconductor Index surged 6.42% to a new all-time high, driven in part by news of a collaboration between Intel and Apple on chip development announced by President Trump. The small-cap Russell 2000 also reached a record closing high.reuters

Broader Context

The inflows mark a sharp reversal from earlier in June, when US equity funds suffered a $12.57 billion outflow in the week ending June 10 amid concerns about Federal Reserve hawkishness and potential market instability. The Iran deal transformed sentiment virtually overnight, with approximately 1,500 ships that had been stranded in the Persian Gulf beginning to move through newly cleared shipping lanes.npr

Despite the optimism, risks remain. NPR reported that mine-clearing operations may take 40 to 50 days before shipping fully normalizes, and the Federal Reserve’s willingness to raise rates later this year continues to loom over markets. With the stock market closed Friday for Juneteenth, the S&P 500 posted a weekly gain of 0.93% and the Nasdaq advanced 2.43% for the week.reuters