How retail traders are reacting to the dip, election, crypto

Early August sell-offs significantly impacted tech stock trades, prompting investors to seek buying opportunities in the dip or even find encouragement to rotate out of Big Tech. Robinhood Financial head of investment strategy Stephanie Guild joins Catalysts to share her market outlook (^DJI, ^IXIC, ^GSPC).

Guild notes that the sell-off triggered a "buy the dip" response from investors, with semiconductor stocks attracting the most purchases and gains. She notes that volumes increased across various sectors and industries, stating there was "net-buying rather than net-selling overall."

Explaining the strong interest in semiconductor stocks during the downturn, Guild states, "I think our customer base thinks long-term." She adds, "I think our customers really do think about what the future holds, not just for the next couple of years, but ten, 20 years ahead, and what will be the most important companies then."

Guild also notes how retail traders on the Robinhood platform are reacting to the site's inclusion of crypto and the upcoming 2024 presidential election.

For more expert insight and the latest market action, click here to watch this full episode of Catalysts.

This post was written by Angel Smith