6 July (Reuters) – Strong returns boosted retail traders’ exposure to U.S. stocks in June, shifting their focus from artificial intelligence stocks to electric car companies at the start of the year.
They poured an average of $1.4 billion a day into U.S. stocks during the month, approaching a record $1.5 billion a day in March, according to Vanda Research.
U.S. stocks posted their first monthly performance in roughly eight months in June, fueling speculation that signs of slowing inflation were nearing the end of the Fed’s rate-hiking cycle.
“It may be difficult for the pace of cash equities buying to accelerate further from this level, but there is room for more speculative buying in the options space,” said Marco Iachini, senior vice president of retail flows tracking at Vanda Research. There is still ,” he said. .
Data from JPMorgan shows that retail trading activity as a percentage of total market volume rose to 21.9% as of July 5, the highest level since January 24 (as of May 31). 14%).
Consistent retail favorite Tesla’s (TSLA.O) record vehicle deliveries are helping spark interest among smaller investors in electric-vehicle stocks, including Rivian (RIVN.O), Yakini said. said Mr.
Incentives under the Inflation Control Act and a competitive pricing environment are driving demand for EVs.
In contrast, C3. Demand from retail investors for AI stocks, including ai (AI.N), has slowed somewhat since the beginning of the year after several weeks of rallying, Yaquini added.
Meanwhile, Joby Aviation (JOBY.N)’s 67% gain from last week was solid buying at retailers after U.S. aviation regulators gave the green light to flight-test the company’s electric air taxis. led by.
Peter Hillerberg, co-founder of analytics firm Ortex, said about 11.61% of Joby shares are in short positions, with more shorting likely if the stock continues to rise.
Reported by Meda Singh, Bangalore.Editing: Shinjini Ganguly
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