JPMorgan: US retail investors' stock market inflows in 2025 increase by 53% compared to last year

According to TechFlow, on December 24, JPMorgan data showed that in 2025, the amount of capital invested by U.S. retail investors in the stock market increased by 53% compared to last year, surpassing the peak of the retail trading frenzy in 2021 by 14%. Retail trading volume accounted for 20%-25% of total trading volume, and in April, it reached a historical high of 35%. Analysts believe that retail investors have become the main driving force behind the stock market rally, especially as their bottom-fishing behavior during market sell-offs has helped push the S&P 500 Index to new highs. The widespread adoption of low-cost trading platforms and zero-commission policies has made it easier for ordinary investors to enter the market, and retail investors' preference for ETFs has significantly increased. Analysts expect this trend to continue into 2026, supported by potential interest rate cuts from the Federal Reserve, but investors should remain vigilant against market risks.