Retail Traders Dump $338 Million in Stocks as Tech Selloff Triggers Biggest Outflow Since 2020
Updated
Updated · CNBC · Nov 5
Retail Traders Dump $338 Million in Stocks as Tech Selloff Triggers Biggest Outflow Since 2020
1 articles · Updated · CNBC · Nov 5
Summary
Retail investors sold a net $338 million of single stocks on Thursday, Vanda Research said, marking their biggest one-day outflow since March 2020.
The reversal came during a sharp rotation out of technology shares, with Vanda saying the usual retail dip-buying bid in individual names had effectively vanished.
U.S. markets sank hard the same day: the Dow Jones Industrial Average fell 1,800 points and the Nasdaq Composite slid into correction territory.
What buying remained shifted into leveraged products tied to the Nasdaq-100 and semiconductors, including TQQQ and SOXL, suggesting a buyers' strike colliding with forced selling.