US retail stock buying hits lowest level since early 2020

Net purchases by retail investors in the U.S. stock market totaled $13 billion over the past month, the lowest level since the early days of the COVID-19 pandemic in 2020, according to data from financial analytics firm VandaTrack. This figure represents a steep $18 billion (58%) drop in monthly net purchases compared to early 2026. The decline was particularly sharp in individual stocks, where net buying fell by $8 billion (71%) to $3.2 billion, signaling a significant cooling of trading activity. Despite the slowdown in new buying, the total value of positions held by retail investors has doubled since mid-2024 to a record high of $500 billion. VandaTrack suggested that selling pressure from retail investors has grown to match buying pressure, compressing overall net purchases. The firm also noted that a diversion of speculative funds into alternative areas like Web3 and prediction markets may have contributed to the trend.