The final session of February 2026 brought historic records to stock markets in Europe and Japan, while the American market grapples with a correction in the technology sector. Japan's Nikkei index once again pushed its all-time high boundary, and European exchanges are heading for their longest monthly winning streak in 13 years. However, investors are watching with concern the slowdown in capital inflows to equity funds, linked to fears over the valuations of companies developing artificial intelligence.

Japanese Nikkei Records

The Tokyo stock index once again pushed its historic boundary, closing at its highest level in history despite signs of fatigue in Asia.

AI Sector Correction in the USA

Nvidia's stock fell by over 5 percent, dragging down the technology sector and limiting inflows to global equity funds.

European Bull Market Continues

European markets are heading to close their eighth consecutive growth month, marking the longest such streak in thirteen years.

Capital Outflow from Korea

Foreign funds withdrew nearly 5 billion dollars from the Korean chip sector, realizing profits after recent gains.

The end of February 2026 will be recorded in capital market history as a moment of rare divergence between global financial centers. In Japan, the Nikkei 225 index once again set a historic closing high, confirming the ongoing bull market there, driven by corporate governance reforms and a weak yen. Simultaneously in Europe, investors are celebrating an exceptional winning streak; continental indices are on track to close their eighth consecutive month in the green, marking the longest such series since 2013. Optimism on the Old Continent grew despite mixed sentiment in the banking sector, where Italian institutions such as Monte dei Paschi di Siena and Mediobanca came under pressure following the publication of new industrial plans. A completely different picture emerges from the American stock market, where futures contracts on the Nasdaq and S&P 500 indices show clear weakness. The main reason for the deterioration in sentiment is a correction in the semiconductor and artificial intelligence-related technology sector. Nvidia, the previous engine of global growth, recorded a sharp devaluation exceeding 5%, sparking a wave of questions about the durability of the current technology cycle. Data from capital flow monitoring indicates that global inflows to equity funds fell to their lowest level in five weeks, suggesting growing caution among managers towards high-risk assets. The contemporary structure of US stock indices is heavily concentrated around the seven largest technology companies, meaning any turbulence in the silicon sector has a disproportionately large impact on global financial markets compared to previous decades. Interesting phenomena also occurred in the Korean market, where there was a massive sell-off of chipmaker stocks by foreign capital. Global funds withdrew nearly $5 billion from there after a period of rapid growth, leading to unprecedented volatility in ETF units. Investors are currently seeking new catalysts, awaiting the publication of US labor market data, which may shed light on the Federal Reserve's next steps regarding interest rates. Meanwhile, in Europe, stability stems from the good financial results of industrial companies, which have balanced the decline in enthusiasm for the Big Tech sector. „Global equity fund inflows cool to a five-week low on AI concerns” — Reuters Analysis