Once bitten, twice shy? Retail investors who got burnt by the bear market in 2022 are sitting out the sharp rally in US equities this year. The Nasdaq Composite has gained more than 20 per cent since the start of January. Elsewhere, the S&P 500 has bounced back from March’s banking turmoil to trade up 9 per cent for the period.

Having bought beaten-down shares with a fury at the start of 2023, appetite from the do-it-yourself crowd has waned. Retail trading orders in stocks and exchange traded funds now account for less than 16 per cent of all trading flows, according to JPMorgan Chase. That is down from a peak of 23 per cent in late January.

Separate data from Vanda Research show a similar pullback. Net inflows into US equities from retail investors have averaged about $874mn a day over the past month. That is the lowest level since November 2020 and is down from a record $1.5bn a day recorded in February.