Foreign Investors Bought Record US Equities

International buyers acquired $942 billion in American stocks during the 12-month period ending in July 2026.

Updated on Sept. 26, 2026 in Stock Markets

Isometric editorial illustration of stacked steel cargo containers at a port, representing the shift in global financial capital. — Foreign investors purchased a record $942 billion in US equities in the 12 months ending July 2026, pivoting away from traditional debt holdings. AI Illustration. Upload story photo >

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Foreign investors set an all-time record by purchasing $942 billion in net US equities and investment fund shares during the 12-month period ending in July 2026. This buying spree included $426 billion in the second quarter of 2026 alone, significantly outpacing the previous quarterly record of $299 billion set in 2022.

Why it matters

The massive influx of capital into American stock markets coincided with the S&P 500 benchmark index gaining 20 percent over the year leading to July 2026. This buying trend highlights a strategic shift as international investors look to capitalize on American market performance while diversifying away from traditional debt holdings.

Foreign investors were net buyers of US equities for six consecutive months ending in July 2026. During this period, the S&P 500 index saw a 14.9 percent gain in the second quarter of 2026.

The players

China

The nation is actively diversifying its foreign reserves away from US Treasuries toward gold and agency bonds.

Korea

Investors from this market shifted capital into US equities to reduce exposure and concentration risk in their local portfolios.

Taiwan

Market participants from this region sought US-based equities as a strategic move to manage portfolio concentration.

The details

Investors from Korea and Taiwan drove much of this volume, shifting capital into US equities to mitigate concentration risk within their domestic portfolios. Conversely, foreign net purchases of US debt securities cooled significantly, falling from $314 billion in the first quarter of 2026 to $188 billion in the second quarter.

12 months ending in July 2026 saw $942 billion in net US equity purchases.
The second quarter of 2026 saw $426 billion in foreign equity purchases.
Monthly net purchases reached $110 billion in April, $182 billion in June, and $3.7 billion in July 2026.
China's holdings of US Treasuries declined to $618 billion by the end of the second quarter of 2026.

Market Landscape

This record-breaking activity updates the 2022 quarterly record for foreign equity purchases by reporting a new peak of $426 billion in the second quarter of 2026. The shift signals a broader move away from US debt securities, which saw foreign purchases decline significantly in the same period.

Increased demand for US equities can contribute to higher market valuations, which directly impacts the performance of retirement portfolios and index-based investment accounts. Investors should remain mindful that the cooling of foreign interest in US debt may influence future interest rate environments and broader bond market stability.

The takeaway

The trend reflects a calculated pivot by global investors who are favoring the growth potential of US equities over the traditional safety of government debt. Diversification strategies by major institutional holders, like Beijing, suggest a changing long-term relationship with American Treasury securities.