Retail Investors Drive US Equity Market with 16-Week Buying Streak

New York, NY – Retail investors have demonstrated a sustained bullish sentiment in the U.S. equity market, marking 16 out of the last 18 weeks as net buyers of U.S. equities. This buying streak underscores the significant and ongoing influence of individual traders in shaping market dynamics. The trend extends to equity options, where retail investors have been net buyers for 16 consecutive weeks, representing the longest such period in two years.

This prolonged bullish stretch is nearing the intensity observed during the 2020-2021 "meme stock" frenzy, highlighting a robust return of retail participation. According to The Kobeissi Letter, "Retail investors remain a key force in the market." This consistent engagement contrasts with historical patterns, where strong buying activity in June and July typically led to a slowdown in August and September, as noted by Citadel data since 2017.

Top investment picks for retail traders on a 5-day rolling basis of net order flows include technology giants Tesla ($TSLA) and Nvidia ($NVDA), alongside healthcare conglomerate UnitedHealth ($UNH). These selections indicate a continued focus on high-growth and established market leaders. Nvidia, a key player in the AI sector, has seen substantial interest, with reports from August 2025 indicating its development of new, more powerful chips for the Chinese market.

However, UnitedHealth has faced recent headwinds. The stock experienced a significant decline in May 2025, falling 22.4% after its first-quarter earnings and guidance cut, followed by another 17.8% drop when its CEO stepped down and full-year guidance was suspended. Despite a recent resurgence in August 2025 following news of a significant stake acquired by Warren Buffett's Berkshire Hathaway, UnitedHealth's stock was still down 39.8% year-to-date as of August 20, 2025, trading 51.4% below its November 2024 52-week high.

The increased retail activity has contributed to elevated equity volumes, with average daily trading volume reaching 12.2 billion shares in 2024, a 10.2% year-over-year increase. Options volumes also surged, averaging 47.3 million contracts daily in 2024, up 9.0% from the previous year. This sustained retail engagement is a notable characteristic of the current market landscape, challenging traditional market expectations and reinforcing the growing power of individual investors.