Individual investors responded actively to the recent market downturn prompted by concerns over a Chinese AI startup by diversifying their investments into technology stocks, as indicated by data from Vanda Research released on Wednesday.
During the initial days of the week when the AI company experienced a substantial market value decline, retail investors allocated approximately one-third of their investment funds, according to Vanda. The data revealed a strong interest from retail investors in companies such as Tesla, Broadcom, and Apple, alongside tech-focused exchange-traded funds like the Invesco QQQ Trust and a triple-leveraged ETF linked to the Nasdaq 100 Index.
Vanda's report authors, Marco Iachini, the firm's senior vice president, and Lucas Mantle, vice president, noted, This buy-the-dip opportunity is proving too tempting for individual investors to ignore.
In total, Vanda estimated a total inflow of new capital of around $4.25 billion into U.S. financial markets between Friday and the close of the market on Tuesday. This surge elevated the retail inflow average over the past five days to about $1.3 billion per day, a level not seen since the immediate aftermath of the U.S. presidential election in November.