Since late 2024, retail trading in the U.S. surged to a peak of $70 billion a day as investors shifted from crypto and software stocks to value stocks. However, recent escalations in the Iran conflict have triggered a significant decline in retail trading activity, dropping below $35 billion per day for single stocks, and causing a $5 billion reduction in ETF activity.
In March 2026, retail traders became net sellers of single stocks every day, resulting in a record net selling of over $15 billion for the month. Conversely, retail traders have continued to purchase ETFs, buying more than $19 billion in March alone and over $70 billion in the first quarter. This marks the first notable dip in U.S. retail trading activity since 2021, with changes in popular stocks indicating a shift, as NVIDIA recently surpassed Tesla in retail stock purchases.
Overall, these trends highlight a crucial pivot in retail investor behavior amidst global uncertainties, illustrating the first major decline in trading activity tied to geopolitical unrest.
