Recent data from Vanda Research indicates that institutional investors are maintaining their positions in the stock market despite rising Treasury yields, which have reached their highest levels in over a decade. Viraj Patel, a global market strategist at Vanda, noted that institutional trading activity has surged, with options flows approximately three times higher than usual for September.
This resilience among large investors suggests a continued appetite for risk, particularly in select sectors like artificial intelligence, with Meta Platforms identified as a key stock benefiting from this trend. In contrast, retail investors are losing their share of trading volume, now more than three percentage points below the five-year average, as they retreat from the market.
Despite the macroeconomic uncertainties, the S&P 500 has managed to rise over 1% last week, reflecting a positive month overall, which may signal a potential shift in market leadership back to institutional players