Global fund managers are reversing earlier flows away from U.S. stocks, returning to American equities on expectations of rate cuts and strength in AI-related sectors. After a sustained selloff earlier in the year tied to tariff fears, U.S. equities have gained ~7% in the past quarter, leading fund managers to tilt portfolios back. Some warn the rally mirrors late-cycle excesses seen in prior tech bubbles.

U.S. equity futures slipped early Thursday as investors recalibrated expectations for future rate cuts. The upcoming PCE inflation report is especially in focus, with markets wondering if the Fed will delay easing. Earlier comments from central bank officials warning of overvalued asset prices have added caution.