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Retail traders’ monthly appetite for stocks ascends to fresh record

“The current ‘new year’ momentum has been sustained and has now pushed retail activity to an all-time high on a rolling monthly basis,” according to JPMorgan.

Luke Kawa

With an insatiable appetite for both single stocks and ETFs to kick off 2026, retails traders have bought themselves into the record books.

“Retail investors continue to set new records this year — reaching an impressive $12.9B this week,” JPMorgan strategist Arun Jain wrote. “This level is comparable to last year’s buy-the-dip episodes (post-DeepSeek, March Momentum Unwind and the V-Shape recovery in April); but unlike those prior episodes, which faded quickly, the current ‘new year’ momentum has been sustained and has now pushed retail activity to an all-time high on a rolling monthly basis.”

JPM retail demand

Tuesday, when stocks slumped amid tariff and geopolitical tensions, was the third-largest trading day of the past year for retail, per Jain.

An elevated retail presence has unsurprisingly coincided with a strong start to the year for more volatile pockets of the market.

“Improving macroeconomic conditions, firmer growth expectations, and a shift toward more cyclical outcomes have encouraged investors to take on risk,” wrote Dave Mazza, chief executive officer of Roundhill Investments and portfolio manager of the Roundhill Meme Stock ETF. “As confidence has improved, market leadership has broadened beyond mega-cap growth into higher-beta, volatility-sensitive areas.”

In a January 20 email, he flagged Sandisk, Bloom Energy, and Applied Digital as members of the ETF among the chief beneficiaries from “improving price momentum, elevated trading activity, and sustained retail engagement.”

While the current retail footprint in the market has evoked some comparisons to 2021 (well, by me at least), Cboe’s Henry Schwartz, vice president of derivatives market intelligence, pointed out one sign in the options market that there’s less exuberance than in those heady days: the share of single stocks whose calls trade at a higher implied volatility than puts is well shy of its early 2021 peak.

 Single Stock Skew Inversion

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SpaceX gets a wave of bullish ratings from Wall Street analysts

SpaceX received more than a dozen positive analyst calls on Tuesday — including from major Wall Street banks — as they initiate coverage on Elon Musk’s space and AI company.

SpaceX went public on June 12 at a $2.2 trillion valuation, the largest debut in history. While the company hasn’t yet posted a profit, it seems to have convinced Wall Street that it will get there and grow its valuation on the way.

Of the at least 17 analysts that gave a rating on Tuesday, all but one gave it a “buy” or “outperform” rating. MoffettNathanson was "neutral."

The ratings come as SpaceX joined the Nasdaq 100 index, a benchmark tech-heavy basket of companies that underpins millions of portfolios. The inclusion adds built-in demand for the stock from index funds and ETFs.

Still, SpaceX fell more than 5% on Tuesday amid a broader sell-off, and is currently effectively flat from its opening price of $150 a share.

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Nike sinks to lowest level since 2014 after warning of “challenged” sales environment in Q4 report

Did Nike do it?

Investors had a mixed reaction after the global sports apparel company reported its fourth quarter earnings on Tuesday after the bell. Shares initially rose 5% as Nike beat out Wall Street expectations amid a hefty tariff refund bonus. However, the stock then sank to its lowest level since August 2014 in postmarket trading.

Here are the Q4 numbers:

  • Revenue of $11.0 billion (estimate: $10.8 billion).

  • Adjusted earnings per share of $0.20 (estimate: $0.12).

Ahead of this report, Nike warned that results would be flattered by a one-time tariff refund (now estimated at roughly $0.52 per share for the bottom line). That gave the company an extra cushion in snapping its streak of seven quarters of year-over-year profit declines.

Over the past year, the company had been punished by tariffs on imported goods, stagnant consumer spending, and increasing competition from other footwear brands like New Balance, Adidas, and Hoka.

Outgoing CFO Matthew Friend deemed it an “increasingly challenging operating environment, where sell-through remains challenged.”

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