Retail Traders' Rise Upends the Established Stock Market Order

Retail investors now account for roughly 30% of daily US equity volume, with May trading 10% above the January 2021 meme-stock record and June setting a new all-time high, according to Goldman Sachs data. Options activity has doubled from three years ago, topping 50 million contracts on multiple days this year, as retail traders buy dips, ride momentum, and use leverage while institutional investors remain cautious and underweight.

Why it matters: What has changed is the structural permanence of retail strength: even major events like the Iran war and chip stock selloffs barely moved sentiment, with Citadel Securities reporting no net sell days on its retail platform in July.