Institutional Investors Regain Prominence Over Retail Traders in Stock Market
Retail traders, who had been active buyers for years and even helped drive market gains after the Trump tariff rollout in 2025, are now reducing their participation. Data from Vanda Research indicates a shift back to institutional investors as key drivers of stock activity, with options flows showing three times higher volume than typical September levels. Despite rising U.S. Treasury yields reaching multi-decade highs, institutional money has remained resilient and selective in its investments. Viraj Patel at Vanda noted that this trend is constructive for risk appetite among big investors who are focusing on specific opportunities like artificial intelligence stocks, particularly Meta Platforms (ticker: META). The S&P 500 closed last week more than 1% higher despite the macroeconomic pressures.
Tickers: $META
Topics: AI stocks institutional investors Meta Platforms retail traders Treasury yields