Retail traders are now critical force in U.S. equity markets: Goldman Sachs

Goldman Sachs analysts report that retail investors have become a significant force in U.S. equity markets, accounting for over 28% of S&P 500 trading on peak days. Their trading activity is closely linked to market movements, particularly in technology and consumer discretionary sectors. The Speculative Trading Indicator reached 114 in August, indicating increased risk-taking among retail investors. Despite institutional sentiment being modestly risk-on, retail traders are crucial for market momentum, especially as they show a tendency to buy on dips and engage heavily in leveraged ETFs.