Foreign Investments in U.S. Stocks Hit Record High Amid Trade Tensions
Foreign investments in U.S. equities have surged to an all-time high, with overseas buyers now accounting for over half of total allocations. Federal Reserve data reveals foreign holdings of U.S. financial assets exceed 60%, defying expectations of a pullback during escalating trade conflicts.
The resilience comes as multinational corporations double down on artificial intelligence ventures, propelling tech giants like Nvidia, Microsoft, and Alphabet. "The concentration in AI-related equities suggests strategic positioning rather than broad market exposure," notes Sam Stovall of CFRA, questioning whether currency headwinds from a weakening dollar might eventually temper inflows.