Retail Stock Buying Hits Two-Year Low as Caution Builds

Retail investors bought just $1 billion of individual stocks over the past 20 days, the lowest total in at least two years, according to Vanda Research.

Total retail equity purchases were about $10 billion over the same period, near their lowest level since October 2024. The trend has moved lower since April 2025, when 20-day purchases topped $20 billion, and has recently accelerated.

The pullback comes amid headlines about record diesel prices and rising 10-year Treasury yields. “Retail investors are becoming more cautious,” strategists at the Kobeissi Letter said.

Institutional investors, meanwhile, are betting markets can weather the latest economic worries. The S&P 500 has remained near record highs, supported by corporate earnings growth, according to the article.

Analysts project S&P 500 third-quarter earnings growth of nearly 29% from a year earlier. The return of interest in large technology companies, including Meta and Nvidia, has also lifted the market amid optimism about artificial intelligence.

Miller Tabak chief strategist Matt Maley said technology would continue to drive the market. He said the performance of the Magnificent Seven and whether chip stocks regain momentum would be key to the market’s direction over the rest of the year and beyond.