Technology-sector turbulence weighs on equity funds, while fixed income and major-currency demand remain supported

Overview

This report tracks global fund flows, fixed income flows, money market flows, and cross-border FX flows for the week ending June 24, 2026. The key change is that equity fund flows turned from positive to negative, with the technology sector in particular seeing notable outflows after previous strong inflows; at the same time, fixed income funds maintained solid inflows, while cross-border FX flows showed net demand for USD, EUR, JPY, and CNY.

Core views

The report argues that volatility on the equity side may rise further, and the reversal in technology-sector flows deserves attention. However, Goldman Sachs still expects the AI investment boom to continue, so relative equity shocks may remain a supporting factor for the US dollar. From an asset allocation perspective, capital is moving out of equities, especially technology, while continuing to flow into fixed income, indicating a short-term cooling in risk appetite rather than a broad-based liquidity contraction.

Analysis framework

The report uses fund flows as its core analytical framework, comparing weekly net flows, 4-week cumulative flows, percentage of AUM, and 4-week cumulative Z-scores, and breaking the analysis down by developed markets/emerging markets, countries and regions, equity sectors, fixed income categories, and FX currencies. FX flows are estimated using cross-border equity and fixed income fund flows, excluding hard-currency EM bond funds and FX-hedged products.

Methodology notes

• Fund flow analysisGlobal Fund Flows

  Weekly net flows, 4-week cumulative flows, %AUM, and Z-score

  By using net USD inflows/outflows, the share relative to fund assets, and the standardized score of 4-week cumulative flows, the framework measures capital momentum across different assets, regions, and sectors.

• Sector flowsSector-dedicated fund flows

  Flows into sector-dedicated funds

  Equity sector flows capture changes in capital allocated to funds focused on specific sectors, making them more suitable for observing shifts in sector preference and crowding, and they are not equivalent to overall equity market positioning.

• FX flowsFX Flows

  Mapping cross-border fund flows to currency demand

  FX flows are estimated from cross-border equity and fixed income fund flows based on the domicile of the underlying funds, excluding hard-currency EM bond funds and FX-hedged products; the summary table and the detailed FX table in the report may reflect different aggregation methodologies.

Asset mapping & comparison

Structured mapping from thesis to named assets (strengths, weaknesses, peers, risks).

• Global equity funds

  Flows shifted from strong inflows to modest outflows

  Strengths

  The 4-week cumulative total remains a positive inflow of $176.044bn, and global benchmark funds still attracted $14.361bn of inflows during the week.

  Weaknesses

  Total equity funds posted net outflows of $4.992bn during the week, with clear drag from the US, Europe, and Mainland China.

  Comparison

  A sharp cooling compared with the prior week's net inflow of $126.425bn.

  Risks

  If equity volatility continues to rise, outflows may spread from technology to other high-beta sectors.

• Technology equity funds

  Largest sector net outflow this week

  Strengths

  The 4-week cumulative total still shows net inflows of $34.976bn, indicating that AI and technology themes previously retained a capital base.

  Weaknesses

  Weekly net outflow of $23.832bn, or -1.00% of AUM for the week.

  Comparison

  A rapid reversal after several consecutive weeks of strong inflows, weaker than most other equity sectors.

  Risks

  A decline in crowding in technology flows may intensify valuation and momentum volatility.

• Fixed income funds

  Continued to receive capital support

  Strengths

  Global fixed income posted net inflows of $16.374bn during the week, with evidence of inflows into short-duration, inflation-protected, and EM bond funds.

  Weaknesses

  Long-duration fixed income showed a 4-week cumulative total of -$5.852bn and -$1.183bn for the week, and remains under pressure.

  Comparison

  Compared with equity funds turning negative, fixed income flows were more resilient.

  Risks

  Interest-rate volatility or changes in credit spreads could affect the sustainability of subsequent inflows.

• USD

  Strongest net demand among major currencies

  Strengths

  In the detailed FX table, USD saw weekly net demand of $9.605bn and a 4-week cumulative total of $43.987bn.

  Weaknesses

  The report acknowledges that equity volatility may rise further; if the shock turns into a US-specific negative factor, support for the dollar may weaken.

  Comparison

  Weekly net demand for USD was higher than for EUR and JPY.

  Risks

  AI investment expectations, the relative performance of US assets, and changes in global risk appetite are key uncertainties.

• CNY

  Turned from consecutive outflows to net inflows

  Strengths

  In the detailed FX table, CNY posted net inflows of $1.535bn during the week.

  Weaknesses

  The 4-week cumulative total is still -$4.533bn, indicating that medium-term capital momentum has not fully recovered.

  Comparison

  Asia as a whole posted $2.758bn during the week, and CNY was one of the key positive contributors within the region.

  Risks

  If Mainland China equity funds continue to see outflows, the sustainability of CNY inflows will still need to be monitored.

Key data

• Global equity funds24-Jun net outflow of $4.992bn; 4-week cumulative net inflow of $176.044bn; -0.02% of AUM for the weekThe prior week saw net inflows of $126.425bn, indicating a clear cooling in equity flow momentum.
• Technology equity funds24-Jun net outflow of $23.832bn; 4-week cumulative net inflow of $34.976bn; -1.00% of AUM for the weekAfter several consecutive weeks of strong inflows, the technology sector posted the largest net outflow, which is the core evidence behind this week's title, “Tech Turmoil.”
• US and European equity fundsUS weekly net outflow of $8.548bn; Western Europe weekly net outflow of $1.294bnDeveloped market equity funds recorded combined net outflows of $8.294bn during the week, mainly dragged down by the US and Europe.
• Emerging market equity fundsEM weekly net outflow of $11.059bn; Mainland China net outflow of $10.367bn; Taiwan net inflow of $1.077bnPerformance within EM was mixed, with Mainland China as the main source of outflows while Taiwan maintained net inflows.
• Global fixed income funds24-Jun net inflow of $16.374bn; 4-week cumulative net inflow of $96.021bn; 0.17% of AUM for the weekFixed income flows continued to enjoy broad support.
• EM fixed income funds24-Jun net inflow of $3.220bn; of which Hard was $0.578bn and Local was $2.500bnBoth hard-currency and local-currency EM bond funds posted net inflows, with stronger inflows into local-currency bonds.
• Money market funds-$25.536bn on 24-Jun; 4-week cumulative total of $119.227bnFlows were negative for the week, but the 4-week cumulative figure remained positive.
• FX flow summaryIn the summary table, weekly FX Flows were $7.810bn, with a 4-week cumulative total of $63.506bnThe body of the report states that cross-border FX flows were positive overall.
• Major currency demandIn the detailed FX table, USD was $9.605bn for the week, EUR $2.352bn, JPY $1.988bn, and CNY $1.535bnNet demand was strongest for USD, EUR, and JPY; CNY turned to net inflows after several consecutive weeks of net outflows.

Impact & implications

The short-term implication is that equity risk appetite is cooling, with the technology sector shifting from crowded inflows to significant outflows, which could amplify equity volatility; at the same time, fixed income continues to attract capital, indicating investors still favor yield and defensive characteristics. In FX, the US dollar remains supported during technology volatility, which the report partly attributes to the shock not being clearly negative for the US and to global equities and US equities coming under pressure simultaneously; if the AI investment boom continues, the dollar may still receive support from relative equity momentum.

Risks

• Equity volatility may rise further, especially after technology-sector flows shifted from strong inflows to large outflows, increasing short-term price volatility risk.
• Flows into sector-dedicated funds and country/region-dedicated funds are not equivalent to total market positioning, and may understate or overstate actual capital pressure.
• The FX flow methodology excludes hard-currency EM bond funds and FX-hedged products, so it cannot fully represent total FX trading demand.
• The report is based on public information and data Goldman Sachs considers reliable, but the disclosure states that no guarantee is made regarding accuracy or completeness, and views may change over time.
• Goldman Sachs and its affiliates may hold long or short positions in relevant securities or derivatives, and the research views may differ from trading views held by other business divisions.

What to watch

• Whether the large one-week outflow from technology funds continues, or whether flows turn back into AI-themed inflows.
• Whether outflows from US, European, and Mainland China equity funds narrow, which is key to judging a recovery in equity risk appetite.
• Whether fixed income inflows remain concentrated in short-duration, inflation-protected, and EM local-currency bonds.
• Whether net demand for USD, EUR, and JPY continues to lead, and whether CNY's one-week turn positive can reverse the 4-week cumulative net outflow.
• Whether the AI investment boom continues to support the dollar's relative equity momentum, while watching the challenge posed by rising equity volatility to this thesis.