June 26 (Reuters) – Global equity fund inflows slowed sharply in the week to June 24, as concerns over debt-funded technology spending and a hawkish stance ‌of the U.S. Federal Reserve cooled risk appetite.

Investors purchased a net $7.51 billion ‌worth of global equity funds during the week, down about 86% from net buying of $55.53 billion in the ​previous week, according to LSEG Lipper data.

The slowdown came as investors grew more wary of stretched technology valuations, with debt-funded spending by major tech companies drawing closer scrutiny. Elon Musk’s SpaceX joined other mega-cap names in tapping bond markets, adding to concerns that the sector’s ‌investment boom is increasingly reliant ⁠on borrowing.

Sentiment was also pressured by persistent rate concerns, as Thursday’s Commerce Department data showing May PCE inflation at 4.1%, its highest since ⁠April 2023, reinforced expectations of a possible 25-basis-point Fed hike later this year.

European and Asian equity funds drew inflows of $6.28 billion and $2.95 billion, respectively, during the week, down from $11.71 billion ​and $3.82 billion ​in the previous week. Meanwhile, U.S. funds recorded $3.53 ​billion in outflows.

Technology sector funds logged ‌weekly net outflows of $17.83 billion, broadly reversing the previous week’s $21.5 billion in inflows. Financial and industrial sector funds also recorded net sales of $750 million and $1.04 billion, respectively.

Investors, meanwhile, bought a net $10.85 billion worth of bond funds, extending their recent buying streak into a 12th straight week.

Global hard-currency bond funds, short-term bond funds and dollar-denominated medium-term bond funds ‌attracted notable inflows of $3.1 billion, $2.42 billion and $1.87 billion, respectively.

Money ​market funds posted outflows of $42.8 billion during the ​week, the largest weekly withdrawal since ​April 15.

Among commodity funds, gold and other precious metal funds recorded ‌a sixth consecutive weekly outflow, with net ​sales of $545 million. Energy ​funds also posted weekly net sales of $81.9 million, following two successive weeks of inflows.

In emerging markets, the selling streak in equity funds extended into a ninth ​straight week, with $3.39 billion in ‌net sales. Bond funds, however, attracted $132 million, their first inflow in three weeks, ​data covering 28,875 funds showed.

(Reporting by Gaurav Dogra; additional reporting by Patturaja ​Murugaboopathy in Bengaluru; Editing by Rashmi Aich)