--- title: "Retail investors become the core driving force behind the rise of U.S. stocks: net inflows in 2025 are expected to hit a record high, with AI and ETFs in high demand" type: "News" locale: "zh-HK" url: "https://longbridge.com/zh-HK/news/270685153.md" description: "Analysts point out that individual investors have become the core driving force behind the rise of U.S. stocks, with net inflows from retail investors expected to reach a record high in 2025. JP Morgan data shows that the cash injected by retail investors into U.S. stocks in 2025 will increase by 53% compared to last year. Retail trading accounts for 20-25% of total trading volume, peaking at 35% in April. Retail investors are buying high-quality stocks on dips during market fluctuations, driving the S&P 500 index higher. The rise of low-cost brokerages has increased retail participation, with AI concept stocks like NVIDIA and Palantir Tech being particularly favored" datetime: "2025-12-24T03:52:03.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/270685153.md) - [en](https://longbridge.com/en/news/270685153.md) - [zh-HK](https://longbridge.com/zh-HK/news/270685153.md) --- > 支持的語言: [简体中文](https://longbridge.com/zh-CN/news/270685153.md) | [English](https://longbridge.com/en/news/270685153.md) # Retail investors become the core driving force behind the rise of U.S. stocks: net inflows in 2025 are expected to hit a record high, with AI and ETFs in high demand According to the Zhitong Finance APP, analysts have stated that as individual investors become the main force driving the stock market's rise, and with expectations of interest rate cuts potentially continuing the upward trend into next year, net inflows of retail funds into U.S. stocks are expected to reach a historic high in 2025. Data from JP Morgan analysts shows that retail cash injections into U.S. stocks so far in 2025 have increased by 53% compared to $197 billion during the same period last year, and are also 14% higher than the $270 billion peak during the retail trading frenzy in 2021. Additionally, trading data from JP Morgan indicates that retail trading accounted for 20-25% of total trading volume this year, peaking at around 35% in April. Retail investors have been buying quality stocks during market sell-offs, especially after U.S. President Trump's "Liberation Day" tariffs in April caused global market turbulence, helping to push the S&P 500 index to new highs. This benchmark index has risen about 16% year-to-date. "Retail investors will continue to be present, especially in 2026. They made money this year, enjoy trading stocks, and have the corresponding applications. We will continue to see them play an active role," said Steven DeSanctis, a small-cap strategist at Jefferies. In recent years, with the rise of low-cost, commission-free brokers like Robinhood and Interactive Brokers, ordinary Americans have been entering the market more easily and at lower costs, steadily increasing retail participation in the stock market. This trend gained widespread attention in 2021 when many Americans, staying at home due to the COVID-19 pandemic, had ample cash and used mobile trading platforms to bet on various assets like GameStop and large tech stocks. According to data from retail brokers and executives, AI concept stocks such as NVIDIA (NVDA.US) and Palantir Technologies (PLTR.US) have been the most favored targets this year, with the latter being bought on dips as institutional investors exited due to valuation concerns, resulting in a price increase of over 100%. Another stock favored by retail investors, Tesla, reached a record high on December 17, marking the first time since the end of 2024. "The two most active stocks on our platform are usually NVIDIA and Tesla (TSLA.US). These are just two examples of retail investors controlling the market narrative and, in many cases, forcing institutional investors to follow," said Steve Sosnick, chief strategist at Interactive Brokers. As investors' strategies become more "thematic," quantum computing companies, uranium miners, metal miners, and rare earth companies have also attracted significant retail interest. ## Retail Investors Increasingly Favor ETFs Executives from major trading platforms have indicated that a key feature of retail trading in 2025 is an increasing preference for exchange-traded funds (ETFs) that track stock indices, cryptocurrencies, and commodities. "Investors continue to be attracted to ETFs. They trade all day, are tax-efficient, and offer high transparency," said Brian Lake, co-head of global third-party wealth management at Goldman Sachs Asset Management Brett Kenwell, a U.S. investment analyst at the trading platform eToro, pointed out that Direxion's daily three-times long and three-times short semiconductor ETFs are among the top five ETFs by dollar trading volume on the platform. Joe Mazzola, head of trading and derivatives at Charles Schwab, stated that retail investors are now making more rational trading decisions, with fewer occurrences and shorter durations of the so-called "meme stock frenzy." He added, "Retail investors have been more attuned to market dynamics this year." ## Potential Rate Cuts Seen as Key Catalyst Analysts and brokerages believe that the Federal Reserve's potential rate cuts are expected to continue boosting the market next year, sustaining retail investment momentum into 2026. Increased volatility in the stock market could trigger a market pullback, attracting retail investors willing to bet on a rebound, but recent signs indicate that retail enthusiasm for such opportunities is not as strong as before. Last week, it was reported that Nasdaq plans to file documents with the U.S. Securities and Exchange Commission to launch 24-hour stock trading. Analysts believe this move could further accelerate retail trading momentum. "We are in a 'golden age' of retail investing, with better access to information, market entry, and advanced trading platforms," said David Russell, global market strategist at TradeStation. Nevertheless, due to ongoing concerns about the AI concept stocks that have dominated the market this year, analysts expect that retail fund inflows next year will not exceed the record set in 2025, as investors may consider diversifying their portfolios. Kenwell from eToro stated that ETFs in finance, communications, consumer discretionary, energy, mining, and gold mining may perform well. "But ultimately, retail investors love tech stocks, and this will continue to be an area of focus for them in 2026, especially if we see any market volatility." ### 相關股票 - [NVIDIA (NVDA.US)](https://longbridge.com/zh-HK/quote/NVDA.US.md) - [Palantir Tech (PLTR.US)](https://longbridge.com/zh-HK/quote/PLTR.US.md) ## 相關資訊與研究 - [Nvidia’s $2 Billion Investment in Marvell: What Kind of Company Is Marvell?](https://longbridge.com/zh-HK/news/281372238.md) - [Argentarii LLC Acquires 20,602 Shares of NVIDIA Corporation $NVDA](https://longbridge.com/zh-HK/news/281612604.md) - [MedPal AI Wins Strong Shareholder Backing at AGM as It Expands AI Health Platform](https://longbridge.com/zh-HK/news/281501359.md) - [Insig AI Plans Growth Drive and Eyes Nasdaq Dual Listing](https://longbridge.com/zh-HK/news/281311983.md) - [AI Needs MemoryâThis New DRAM ETF Is All In On Micron, Samsung And Sandisk](https://longbridge.com/zh-HK/news/281578483.md)