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US money market funds attracted nearly $118bn in the week ending 4 November, their biggest weekly inflow in six months, as investors weighed AI spending concerns and political uncertainty. Coinpaper, citing Reuters and LSEG Lipper data, reports that stock funds also attracted $14.81bn, while technology funds lost $160m.
Why it mattersThe cash rush is a sign of caution, not proof that investors have given up on AI or that markets must fall further. Money market funds are not risk-free or the same as insured bank deposits, either. Wall Street is hedging its bets, rather than all heading for the exit.
Discuss: Should AI companies now prioritise proving returns over expanding their infrastructure, or is this kind of market caution too short-term to guide long-term investment?
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