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Retail Traders Retreat Amid Iran Conflict

Seeking Alpha
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⚡ Quantum Brief
Retail trading activity plunged to below $35 billion daily in March 2026, down from $70 billion late 2025, as geopolitical tensions in Iran triggered a sharp pullback among individual investors. Institutional ETF trading surged during the conflict, but retail ETF participation dropped by $5 billion daily, signaling reduced risk appetite among non-professional traders amid macroeconomic uncertainty. Single-stock retail trading saw net outflows of over $15 billion in March, with traders selling equities every trading day—a rare streak reflecting heightened market caution. The shift marks a reversal from late 2024’s post-pandemic retail trading boom, where investors rotated from crypto and tech into value stocks before the Iran conflict disrupted momentum. Nasdaq data highlights how geopolitical crises can rapidly reshape market participation, with retail traders retreating while institutional players dominate macro-driven strategies.
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Nasdaq490 FollowersFollow5ShareSavePlay(4min)CommentsSummaryAt the end of last year, Nasdaq retail data suggests retail trading reached $70 billion a day as markets rotated out of crypto and software stocks and into value stocks. But in the past few weeks, as the conflict in Iran started, data shows retail trading has fallen significantly.Amid the conflict, ETF activity has increased, as ETFs are a natural way to play a macro event. However, retail saw reduced ETF activity, which fell by around $5 billion per day.Single-stock retail trading tumbled even more - below $35 billion a day. Data shows that retail traders were sellers of single stocks every single day in March. As a result, March saw net selling of over $15 billion. Galeanu Mihai/iStock via Getty Images By Phil Mackintosh, Nasdaq Chief Economist Since late 2024, retail traders have become even more active than they were in the years following the pandemic. At the end of last year, our retail data suggests retail tradingThis article was written byNasdaq490 FollowersFollowNasdaq (Nasdaq: NDAQ) is a leading global technology company serving corporate clients, investment managers, banks, brokers, and exchange operators as they navigate and interact with the global capital markets and the broader financial system. We aspire to deliver world-leading platforms that improve the liquidity, transparency, and integrity of the global economy. Our diverse offering of data, analytics, software, exchange capabilities, and client-centric services enables clients to optimize and execute their business vision with confidence.

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