Foreign capital flows into US stocks hit record high

US Stocks: US stocks are shares of publicly traded companies listed on American exchanges, offering investors exposure to the country’s corporate and technology sectors. They are relevant because overseas purchases of US equities reached a record level in the year to July, even as foreign demand for US government debt weakened. Investor Mix: Chinese investors have also been directing more money toward US stock funds after Beijing widened access to overseas investments, adding to international demand for American equities. Capital Flows: Foreign investors have increasingly favored US equities over Treasuries, reflecting strong interest in American companies alongside concerns about inflation, fiscal deficits, and the long-term value of government debt. Market Drivers: Recent equity demand has been supported by optimism about artificial-intelligence and technology companies, while rising government-bond yields have made the divergence between stock and debt flows more pronounced.