U.S. retail investors shift to large-scale selling of tech stocks, with net outflows of approximately $7 billion in a single week

Odaily News Crypto KOL Phyrex posted on X stating that the trading direction of U.S. retail investors has recently shown a significant shift. Data shows that last week, retail investors recorded net selling of stocks for four consecutive trading days, marking the longest continuous selling streak this year, with tech stocks experiencing the largest selling pressure, totaling approximately $7 billion in net outflows for the week. Two of the three historically largest single-day retail sell-offs of tech stocks occurred last week. The selling was mainly concentrated in the semiconductor and memory chip sectors, which had previously been the focus of retail capital inflows during May and June.

Meanwhile, the asset size of U.S. tech-focused leveraged ETFs has decreased by approximately $50 billion from the June high, while leveraged ETFs in South Korea and Taiwan have fallen by more than half from their peaks. The SOXL, a 3x leveraged long semiconductor ETF, has dropped about 67% from its high, and trading volume for South Korea's Hynix 2x ETF has declined by over 90% from its peak.