As geopolitical tensions and economic uncertainties swirl, U.S. retail investors are adopting a defensive stance, withdrawing from equities and leaning into cash. Since May, equity purchases have dropped by $17 billion, with net sales reaching $400 million in a single week, according to JPMorgan. Meanwhile, institutional players remain optimistic: “Big Money” has resumed buying, pushing the S&P 500 near record highs—driven by expanding market breadth and strong tech sector gains.
Key Highlights
- Retail investor equity purchases plunged $17 billion from April to May; weekly net sales hit $400 million :contentReference[oaicite:0]{index=0}
- Institutional investors’ bullish sentiment resurges, supporting S&P 500 rally :contentReference[oaicite:1]{index=1}
- VIX spiked, reflecting heightened anxiety tied to geopolitical concerns and tariff uncertainty :contentReference[oaicite:2]{index=2}
- S&P 500 riding close to record high, aided by broad-based tech strength and trade-policy relief :contentReference[oaicite:3]{index=3}
Outlook
The market exhibits a split personality: retail investors are retreating amid unpredictability, while institutional capital drives the index upward. Future direction hinges on geopolitical developments and trade policy clarity. For now, diversified exposure and robust risk management remain key.