Despite last week’s sell-off in US technology stocks, IG data suggests UK retail investors remain firmly bullish.
Trading activity in the Nasdaq 100 surged as investors bought the dip on both Friday and Monday, indicating continued confidence in the AI-driven rally even amid heightened market volatility.
UK retail investors using investing and trading platform IG responded to the recent Nasdaq 100 pullback by buying the dip across both Friday and Monday, with trading activity remaining elevated throughout the period.
Friday saw the most concentrated burst of dip-buying activity, with Nasdaq 100 trading volumes rising 165% compared with the previous Monday, while the number of active clients placing trades increased 39%.
Buying interest remained strong on Monday. Trading volumes were still 52% higher than the previous Monday, while the number of active clients placing trades remained 8% above normal levels.
The data suggests retail investors used the recent weakness in US technology stocks as a buying opportunity, with participation and trading activity remaining elevated even after the initial sell-off.
Chris Beauchamp, Chief Market Analyst at IG, said:
“The recent swoon in US tech names was viewed by many investors as a buying opportunity rather than a reason to head for the exits. While Friday saw the most concentrated burst of dip-buying activity as markets sold off, trading remained significantly above normal levels on Monday, suggesting investors were still putting money to work after the initial volatility. The data points to continued willingness to ride this astonishing rally, with the OpenAI IPO adding further spice to the mix.”
