The bulk of this activity was driven by equity markets, where foreign buyers snapped up $134 billion in U.S. stocks. This trend reflects the ongoing momentum of the domestic bull market, contributing to a $909 billion net purchase volume in the sector over the past year. Corporate bonds also saw significant interest, with $52.5 billion in overseas purchases during the month, totaling $449 billion over the last year.

Contrasting this equity enthusiasm, foreign holdings of U.S. Treasury bills dropped by $43.5 billion. Analysts are closely watching this shift as markets weigh the impact of persistent inflation on Federal Reserve interest rate policy. Meanwhile, demand for longer-term Treasury securities remained positive, with $56.6 billion in net purchases for the month and $290 billion recorded over the trailing 12-month period.