Retail investors have shown a renewed appetite for US equities, with inflows reaching their largest level since November 2025, according to UBS Securities and Treasury (UBS S&T). In the latest development, $216 million of inflows were recorded from UBS retail market making (RMM), with the majority of these flows concentrated across all sectors except for ETFs and Technology.

The surge in equity buying can be attributed to retail investors increasing their exposure to the US stock market, while still maintaining a cautious approach towards AI-based stocks. To illustrate, the UBS ex-AI 400 basket, which tracks the performance of the remaining 400 stocks in the 500-stock universe, received the lion’s share of inflows, amounting to $141 million. This is a stark contrast to the AI 100 flows, which saw small inflows of $12 million after being heavily sold off in December.

The UBS ex-AI 400 basket serves as a complement to the UBS AI 100 basket, which tracks the performance of the 100 stocks with the most AI exposure. While the AI 100 provides a narrow focus on the most innovative companies, the ex-AI 400 offers a broader perspective on the overall US equity market.

The recent influx of retail investor capital into US equities is a positive development for the market, as it highlights renewed confidence in the economy and corporate earnings. However, it is important to note that this trend may not necessarily persist, and investors should always exercise caution when making investment decisions.