2023-06-09 14:23:10
Retail trading in U.S. stocks is starting to pick up once more following months of slowing as hype surrounding artificial intelligence (AI) and the outlook for interest rates soften, data showed.
Vanda Research pointed out in a report on Thursday (8th) that capital inflows from individual traders in the United States reached the highest level in three months last week, averaging $1.36 billion per day.
After buying U.S. stocks at a record pace in the first quarter of 2023, retail investors took a break amid banking turmoil, high interest rates and recession fears.
But last week’s passage of the U.S. debt ceiling deal avoided a devastating default and allowed the market to break out of range and move higher.
“Risk appetite appears to have returned to retail investor sentiment over the past week following the debt-ceiling deal, as bullish flows in ETFs, individual stocks and options mostly benefited tech companies,” said JPMorgan analyst Peng Cheng. .”
According to Vanda data, the net transaction value in the past week was Tesla (TSLA-US),apple (AAPL-US)、AMD (AMD-US) and Huida (NVDA-US)。
Retail transactions accounted for as much as 17 percent of total U.S. transactions this week, the highest in a month, up from 14 percent the week before, JPMorgan data showed.
at the same time,S&P 500 IndexClimbing 20% from a bear-market low in October, Wall Street’s fear gauge, the Cboe Volatility Index (VIX), fell to its lowest level before the pandemic.
The sharp rise in retail buying may also have contributed to the small-cap short squeeze, analysts at Vanda Research said.
The small-cap index Russell 2000 rose 7.5% in June, well aboveS&P 500 Index 2.7% increase.
“Sustaining buying at these levels will require not only a short squeeze, but above all confidence in the market that retail investors are just beginning to rebuild,” the Vanda analysts added.
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