Retail investors are making a significant comeback to the stock market following a relatively quiet summer, as highlighted by new data from JPMorgan. Over the past week, these investors injected around $7 billion into the market, a substantial increase from the $5.3 billion weekly average observed in the preceding two months. According to Arun Jain, an analyst at JPMorgan, the recent surge in stock market records has fostered a renewed sense of optimism among everyday traders. Additionally, rallies in gold and bitcoin have contributed to this growing enthusiasm.
Recent reports indicate that single stock purchases experienced their strongest net inflows in over three months, with particular momentum on Monday. Meanwhile, flows into exchange-traded funds (ETFs) reached their highest volume in almost five months, as investors gravitated towards precious metal-focused ETFs such as the SPDR Gold Shares (GLD) and the iShares Silver Trust (SLV).
Dell emerged as a standout performer, recording its highest net retail inflows in nearly five months at $16 million following an increase in its long-term revenue growth expectations. The shares have surged nearly 17% week-to-date, reflecting strong investor sentiment.
On the technology front, investors made substantial purchases in Quantum Computing shares, totaling over $80 million on Monday despite a 10% drop in share prices that day, reversing some of the gains seen earlier in the week. This selloff came after the stock surged more than 23% following agreements for stock purchases from institutional investors.
Verizon also attracted significant attention, with retail investors channeling close to $100 million into its shares on Monday. This influx followed a 5% drop in stock price after the announcement that former PayPal CEO Dan Schulman would be replacing Hans Vestberg as CEO, effective immediately.
In a move that reflects broader market dynamics, investors purchased more than $50 million in Occidental Petroleum shares on October 2, even as the company’s stock fell over 7% after Berkshire Hathaway announced its acquisition of Occidental’s petrochemical unit, OxyChem, for $9.7 billion.
Conversely, retail investors opted to sell more than $330 million in AMD shares on Monday after the company’s deal with OpenAI was revealed. Despite a 43% surge in AMD shares throughout the week—setting the stage for its best week since 2016—the selloff indicates a cautious approach among retail traders.
As retail trading activity grows, reminiscent of the 2021 GameStop frenzy, Roundhill Investments has revived its Meme Stock ETF (MEME) this week, after having initially shut down the fund in late 2023 following a nearly two-year run. This revival signifies a renewed interest in meme stocks as retail traders reassert their influence on the market landscape.
