A surge of global capital is flooding into US markets, with foreign investors buying American equities at a record pace and Treasury demand restructuring. US consumer debt has hit an all-time high, signaling a major shift in risk appetite and macro positioning for investors in crypto and equities.

Private investors outside the US purchased $646.8 billion in US equities in the past year, the highest on record. Foreign investment in US Treasuries also surged to $492.7 billion during the same period, reflecting persistent global demand for dollar-denominated safety.

Shifts in foreign Treasury holders’ composition are reshaping the market, with China’s share falling to 7.6%, the UK’s quadrupling to 9.4%, and Japan’s dropping to 12.9%. These changes suggest a long-term repositioning of sovereign and private capital with significant implications for interest rates and market volatility.

US investors have poured $900 billion into equity funds since November 2024, with inflows exceeding those into all other asset classes combined. While institutional and foreign investors increase exposure, US households face growing financial pressure, with credit card debt reaching a record $1.233 trillion in Q3 2025.

JP Morgan predicts the S&P 500 will hit 8,000 next year, bolstered by strong seasonal tailwinds. December historically sees US stocks rise, with the S&P 500 climbing 73% of the time since 1928. The surge in capital flows toward the US reflects rising confidence in American assets and potential challenges abroad.

As liquidity grows and seasonality strengthens, both traditional markets and digital assets are entering a critical phase. Investors are closely monitoring the acceleration of inflows in 2026, shifts in Treasury demand, and the impact of record consumer debt on macroeconomic momentum.

Read more at Yahoo Finance: Foreign Investors Set Record With $646.8 Billion in US Stock Purchases Amid Shifting Global Capital Flows