US retail stock purchases drop to lowest since early 2020

Net purchases by U.S. retail investors in the stock market reached 13 billion dollars over the past month, the lowest level since early 2020. This marks an 18 billion dollar (58%) decline in monthly net purchases compared to early 2026. Individual stocks saw a significant drop, with net buying falling by 8 billion dollars (71%) to 3.2 billion dollars, indicating a cooling of trading activity. Despite the decrease in new buying, the total value of positions held by retail investors has doubled since mid-2024, reaching a record high of 500 billion dollars. VandaTrack noted that selling pressure from retail investors has increased to match buying pressure, compressing overall net purchases. Additionally, a shift of speculative funds into areas like Web3 and prediction markets may have influenced this trend.