US equity-focused ETFs and mutual funds have pulled close to erasing a 2023 outflow which at one point came to almost $70 billion.

Funds dedicated to US shares took in almost $10 billion over the latest weekly reporting period, according to EPFR.

It was the third large-ish inflow in four weeks. Since Nvidia’s dramatic beat and raise and the resolution of the debt ceiling standoff in D.C., US equity funds have taken in more than $61 billion on net.

It’s not possible to say, definitively, which was more important — the A.I. frenzy or the removal of the US default tail risk — but we can safely call late-May/early-June an inflection point. Outflows since then have been sparse and small, while inflows have tended to be chunky.

Overall, developed market equity ETFs and mutual funds took in $10.2 billion last week, the biggest haul since a $15.68 billion influx in the week to July 5.

Notably, DM flows are now positive on net for 2023.

EM equities, which have raked in cash all year, took in another $3.6 billion last week, bringing the YTD total to $73.5 billion.

Net global equity fund flows are now nearly $80 billion for the year.

Last week, I noted there’s been no real capitulation into US stocks on the flows side just yet, as outflows from long-only funds still outstrip ETF inflows. But as the figure below shows, the tide has well and truly turned.

One has to wonder if it’s just a matter of time before the unrelenting melt-up on Wall Street compels an “all-in” moment.

Still, as BofA’s Michael Hartnett noted this week, there’s been “no exodus from cash,” which has taken in nearly $105 billion in July alone.

US money market fund assets hit a new record this week near $5.5 trillion. Globally, around $8 trillion is parked on the sidelines, where it’s generally earning the highest returns in two decades.