Retail Investors Flee Single Stocks at Fastest Pace Since March 2020

Retail investors executed their largest single-day sell-off of individual stocks since the March 2020 Covid-19 crash, according to Vanda Research. Net outflows reached $338 million in single stocks before the final trading hour, breaking their signature dip-buying strategy. The flight from single equities coincided with a steep broader market slump driven by a major rotation out of tech. The Dow Jones Industrial Average dropped approximately 1,800 points, erasing post-midterm gains, while the Nasdaq Composite fell into correction territory. Vanda noted retail bids evaporated into a buyers' strike, with residual buying concentrated in leveraged exchange-traded products like ProShares UltraPro QQQ.