In recent weeks, U.S. retail investors have shown a decline in activity in the stock market, and as analysts note, the traditional strategy of buying on dips is no longer as effective. These participants, who for a long time supported index recoveries after sell-offs, are now less frequently increasing their positions during corrections. According to trading flow data, the volume of purchases by individual investors on one of the last days of November was the lowest since May and ranked among the three weakest days of 2025. NEWSCENTRAL sees this as a signal of growing caution among U.S. retail investors and a shift in market demand structure.
During the summer, many retail investors began shifting their attention to more speculative assets – from uranium companies and businesses with cryptocurrency strategies to quantum computing firms and meme stocks. A key turning point came in September, when inflows into broad-market ETFs, including the SPDR S&P 500 Trust and Invesco QQQ Trust, decreased. NEWSCENTRAL believes this reflects the growing selectivity of U.S. retail investors in choosing instruments and a declining reliance on traditional defensive assets.
By the end of last week, the slowdown in activity even affected broad-market ETFs, previously considered a safe haven during periods of market volatility. At the same time, institutional investors accounted for the majority of purchases, while retail participants became net sellers for the first time since late September. NEWSCENTRAL sees this as an increasing divergence between market segments and a potential rise in the amplitude of fluctuations in the U.S. stock market.
According to Freddy Miller, Senior Analyst at NEWS CENTRAL, the weakening activity of retail investors makes rebounds less sustainable and amplifies the impact of macroeconomic signals. NEWSCENTRAL forecasts that in the coming months, market volatility and reactions to news will be more pronounced. For U.S. market participants, this means paying greater attention to asset quality, portfolio diversification, and risk management: the traditional strategy of “buying the dip” without support from retail investors is becoming less reliable.