Retail investors run for the exit as midterms rattle tech
SPY•Retail investors sold a net $338 million in single stocks by 3 p.m. ET on Thursday, nearing their biggest one-day selling total since the 2020 COVID-19 crash, as midterm-related volatility rattled tech. JPMorgan estimated single-stock purchases fell close to their lowest levels of the year.
1. Selling accelerates
Retail investors sharply reduced single-stock buying this week as volatility sparked by the US midterm election rattled technology shares. They sold a net $338 million in single stocks by 3 p.m. ET on Thursday, according to Vanda Research, approaching their biggest single-day selling total since the 2020 COVID-19 crash.
2. Tech and sector moves
The selloff first hit data center and utility stocks on Wednesday, then spread across technology on Thursday. The S&P 500 and Nasdaq recorded their largest daily declines since early April 2025. JPMorgan said momentum-based trading cratered in October, triggering its largest single-month underperformance in more than 40 years.
3. Investors rotate
Retail investors bought the dip in Alphabet after its stock fell more than 12% following plans to increase capital expenditure in 2027; Apple was the only Magnificent Seven stock sold this week until Thursday, JPMorgan said. Healthcare ETFs reached their highest levels in about two and a half years, while investors also favored consumer staples outside the Magnificent Seven.
