Tracking industry-wide data, Morgan Stanley found that small-time investors snapped up $14 billion in stocks last month, the second-slowest uptake in any month since late 2020. In the options market, where they used to rush to bullish calls for quick profits, activity is now tilting toward bearish puts.
Shawn Cruz, head trading strategist at TD Ameritrade, said clients recently scooped up large-cap tech stocks such as Amazon.com Inc. and Alphabet Inc. as their shares fell amid disappointing earnings.
“Demand for equities was generally light to start the month, but accelerated as the major indices continued their strong pullback below key support levels,” said Cruz. “Given the mounting concerns that have weighed on markets since the start of 2022, it shouldn’t be surprising that buyers were initially hard to come by.”
-With assistance from Vildana Hajric.
This article was provided by Bloomberg News.