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Retail investors pour into tech stocks amid AI driven rally volatility
In South Korea, the Kospi has been halted seven times this year after a sharp drop from a June peak and an 8% decline triggered trading pauses.
In Australia and across parts of Asia, more retail investors in their 20s are putting savings into tech stocks as technology driven market gains, linked to the AI boom, have pulled them in while also raising concerns about volatility. BBC Business profiles 26-year old Michelle Huynh, who says investing feels necessary as purchasing power shrinks, and notes that by mid July her tech stock allocation had jumped about 50% to roughly A$31,000, before gains eased to about A$22,000 as the sector entered what she describes as a wild moment.
The BBC also points to how social media and marketing targeted at non professionals have contributed to the influx, even as some analysts warn that AI related enthusiasm may be overblown. Advisory firm Providend’s Glenn Tan says the retail surge reflects widespread excitement around AI, which has helped lift broad tech benchmarks in multiple markets.
In the United States, the BBC cites the Nasdaq as up about 10% this year, while Japan’s Nikkei 225 is up more than 20%. In South Korea, the tech heavy Kospi has risen more than 50% since January, drawing a large retail following nicknamed “ants,” but the rally has also featured large swings, including a plunge from a June record above 9,000 points to around 6,500.
The BBC Business story highlights how volatility has become apparent through repeated market interventions, with trading on the benchmark index halted seven times this year in an effort to calm panic selling after it fell by 8%. The article says these moves are raising concerns about investors who have borrowed money to participate in the market.
Latest closeNasdaq Comp. 25,881.95 ▼1.5%|Nikkei 225 68,751.51 ▲1.5%|Kospi 7,284.41 ▲6.2%