Retail investors have proven to be resilient buyers in the face of market volatility, with UBS’s US retail market making (RMM) clients recording $269 million inflows on Tuesday, the largest since October. Despite the sell-off across sectors, retail investors remained steady buyers throughout the day, with inflows seen across all sectors except for financials.

The semiconductor sector saw particularly strong demand from retail investors, with inflows totaling $29 million in TSMC, $14 million in Micron, $13 million in Broadcom, and $13 million in AMD. This represents the largest inflows into these stocks since November, as retail investors took advantage of the sell-off to re-enter their positions.

Netflix also saw increased flows following its earnings announcement and headlines surrounding the change in terms for the acquisition deal with Warner Brothers. Retail investors poured $24 million into the stock, making it the second most-bought across the platform. Conversely, WBD was the most sold stock, with record outflows of $30 million.

Notably, UBS RMM clients have now bought back $90 million of the $152 million in stock sold in December, indicating a quick pivot in sentiment towards riskier assets. This highlights the flexibility and adaptability of retail investors in the face of market fluctuations.

Overall, the resilience of retail investors in the face of market volatility is a positive sign for the overall health of the US stock market. As the dust settles from recent events, it will be interesting to see how retail investor sentiment continues to evolve in the coming days and weeks.