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Retail traders dump $338 million in stocks in biggest selling day since 2020
Yahoo Finance • • business
Key Points:
- Retail investors sold a net $338 million in individual US stocks on Thursday, marking the largest single-day net selling since March 2020, according to Vanda Research.
- This selling spree represents a significant shift from the usual behavior of retail investors who typically "buy the dip" during market downturns.
- US stocks, particularly AI and chip stocks, plunged on Thursday, with the Nasdaq Composite dropping 5.2% and nearing a correction.
- Despite widespread selling in individual stocks, some retail investors continued to buy leveraged ETFs like ProShares UltraPro QQQ and Direxion Daily Semiconductor Bull 3X Shares.
- The sell-off reflects a broader "buyers' strike" involving institutional investors and forced selling from systematic and leveraged strategies, according to Vanda Research strategist Viraj Patel.
