Retail Stock Traders Turn Into Sellers as Rally Spurs Skepticism
Pedestrians walk along Wall Street in New York.
Photographer: Michael Nagle/BloombergA bout of equities volatility fueled by surging energy prices amid the Iran war is eroding confidence among some of the market’s most reliable bulls: retail investors.
Take Wednesday, when the S&P 500 Index surged to its highest level since March after news of a US-Iran ceasefire triggered a sharp rally and forced hedge funds to unwind bearish bets. While institutional investors scrambled to cover shorts, individual traders showed little interest in chasing the move.