Record $942bn foreign inflows into US stocks signal shift away from debt
Foreign investors purchased a record $942 billion in US equities over the 12 months to July 2026, the highest total since 1985. This surge coincided with a sharp decline in overseas demand for US debt, as foreign buyers of Treasuries fell to $188 billion in the second quarter. The shift reflects strong performance in the S&P 500 and diversification efforts by investors in Asia, particularly Korea, while China’s Treasury holdings dropped to their lowest level since 2008.