US investors are increasingly moving money out of domestic equities and into overseas markets, signalling a shift away from the long-dominant “buy America” trade as returns from Big Tech moderate and global markets outperform.Data from LSEG/Lipper shows US-domiciled investors have withdrawn about $75 billion from US equity products over the past six months, including $52 billion since the start of 2026 — the largest outflow in the first eight weeks of a year since at least 2010, news agency Reuters reported.The trend reflects growing diversification by American investors, even as a weaker dollar makes overseas investments more expensive. Analysts say the shift mirrors earlier moves by global investors who had already begun reducing exposure to US assets.Since the global financial crisis in 2009, strong economic growth and technology-sector dominance helped US equities deliver outsized gains, reinforcing the “buy America” investment strategy. More recently, the artificial intelligence boom pushed the S&P 500 to record highs last year, cushioning markets despite policy uncertainty linked to President Donald Trump’s trade and diplomatic approach.

Investors look beyond US tech dominance

Rising concerns over AI-related risks and elevated valuations of megacap technology stocks have prompted investors to reassess opportunities abroad. Bank of America’s February fund manager survey showed investors rotating from US equities into emerging markets at the fastest pace in five years.“I’ve had lots of conversations with our wealth business in the U.S. this year,” said Gerry Fowler, UBS’s head of European equity strategy and global derivatives strategy. “They’re all talking about investing more offshore because at the end of the year, they looked at the performance of foreign markets in dollars and they’re like, wow, I’m missing out.”So far this year, US investors have invested about $26 billion into emerging-market equities, with South Korea attracting $2.8 billion and Brazil $1.2 billion, according to LSEG/Lipper data.The dollar has declined roughly 10% against a basket of currencies since last January, partly reflecting policy developments under the Trump administration. While this raises the cost of overseas investments, stronger foreign market performance can enhance dollar-denominated returns.Over the past 12 months, the S&P 500 has gained around 14%, compared with a 43% rise in Tokyo’s Nikkei index, a 26% jump in Europe’s STOXX 600, a 23% return from Shanghai’s CSI 300 and a doubling in South Korea’s KOSPI index.

Valuation gap drives global rotation

Investors are increasingly rotating away from high-growth technology stocks towards industrial and defensive sectors, which are more prominent in markets such as Germany, the UK, Switzerland and Japan.Laura Cooper, global investment strategist at Nuveen, told Reuters that the shift reflects a broader reassessment of valuations. “Increasingly we are seeing U.S. investors look at the global landscape from a valuation perspective,” she said, highlighting cyclical growth momentum in Europe and Japan.European banking stocks surged 67% last year and have risen another 4% so far in 2026, illustrating renewed interest in cyclical sectors.US equities continue to trade at higher valuations, with the S&P 500 valued at roughly 21.8 times expected earnings, compared with about 15 times in Europe, 17 times in Japan and 13.5 times in China.Kevin Thozet, portfolio adviser at Carmignac, said flows of US capital into Europe have accelerated since mid-2025. Since Trump’s inauguration last January, US investors have channelled nearly $7 billion into European equity funds, reversing earlier outflows recorded during his first term.“If I’m taking a very long-term view, it’s, maybe, this idea of a great global rotation,” Thozet said.(Disclaimer: Recommendations and views on the stock market, other asset classes or personal finance management tips given by experts are their own. These opinions do not represent the views of The Times of India)

Major US airlines have expressed concern over travel disruptions after the Department of Homeland Security (DHS) decided to temporarily suspend its PreCheck and Global Entry programmes amid an ongoing government shutdown.The suspension will take effect from 6 a.m. ET (1100 GMT) on Sunday, days after a partial shutdown began following the failure of Republicans and Democrats to reach an agreement on immigration enforcement reforms, news agency Reuters reported.Airlines said travellers received very little advance warning about the move, leaving many with limited time to adjust their travel plans. “Airlines for America is deeply concerned that … the traveling public will be, once again, used as a political football amid another government shutdown,” Chief Executive Chris Sununu said, urging Congress to “get a deal done.”Sununu added that a similar shutdown last fall caused losses of $6.1 billion across the travel industry and related sectors.Homeland Security Secretary Kristi Noem said airport and border agencies would prioritise general passenger movement while suspending “courtesy and special privilege escorts.”“We are making tough but necessary workforce and resource decisions to mitigate the damage,” she said in a DHS statement.The suspension forms part of emergency steps taken by DHS to redirect staffing resources after Congress failed to approve additional funding, according to a Washington Post report.The Transportation Security Administration (TSA) said the PreCheck programme had more than 20 million active members in 2024, while total vetted travellers across DHS programmes, including Global Entry, exceeded 40 million.PreCheck allows approved passengers to use dedicated fast-track security lanes at US airports, while Global Entry expedites customs and immigration clearance for pre-approved, low-risk international travellers entering the United States.The move follows orders from the Trump administration last week directing the Federal Emergency Management Agency to suspend deployment of aid workers to disaster-affected areas during the shutdown.

Last Updated:February 22, 2026, 16:11 IST

Anthropic launched Claude Code Security to scan code for vulnerabilities. Cybersecurity stocks in US dropped over concerns AI could disrupt the industry.

Claude Code Security Impact: IT, Cybersecurity Shares May See Action On Monday

IT and cybersecurity stocks in India may see action on Monday, February 23 when the market opens, as AI firm Anthropic launched Claude Code Security, a new capability built into Claude Code on the web.

The new feature scans codebases for security vulnerabilities and suggests targeted software patches for human review, allowing teams to find and fix security issues that traditional methods often miss.

What’s The Fear?

The new feature has posed a threat to IT and cybersecurity companies, as Claude Code will provide cybersecurity services to teams.

Companies may rely less on legacy scanning tools and cut spending on traditional enterprises.

“This is a pivotal time for cybersecurity. We expect that a significant share of the world’s code will be scanned by AI in the near future, given how effective models have become at finding long-hidden bugs and security issues,” Anthropic said in the blog.

Attackers will use AI to find exploitable weaknesses faster than ever. But defenders who move quickly can find those same weaknesses, patch them, and reduce the risk of an attack.

This has triggered a fear in the US market last week, in which cybersecurity stocks, including CrowdStrike, Palo Alto, Zscaler suffered a heavy sell-off.

CrowdStrike, US cybersecurity technology company, led the heavy beating with shares falling almost 8 per cent to $338.60 per share. Zscaler also dropped sharply by 5.47 per cent to $159.75 per share.

How Claude Code Security works

Rather than scanning for known patterns, Claude Code Security reads and reasons about your code the way a human security researcher would: understanding how components interact, tracing how data moves through your application, and catching complex vulnerabilities that rule-based tools miss.

Every finding goes through a multi-stage verification process before it reaches an analyst. Claude re-examines each result, attempting to prove or disprove its own findings and filter out false positives.

Findings are also assigned severity ratings so teams can focus on the most important fixes first.

Validated findings appear in the Claude Code Security dashboard, where teams can review them, inspect the suggested patches, and approve fixes.

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