Once "Sweetheart," now "Mrs. Niu"—American retail investors "abandon" the Mag 7

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American retail investors are taking real action to distance themselves from their once-beloved tech giants. The once-popular "Magnificent Seven" (Mag 7) trading frenzy is fading, with retail participation falling to a four-year low, and funds are quietly flowing into ETFs, cryptocurrencies, and even prediction markets, among broader speculative channels.

On June 30, according to Bloomberg, the latest data from Citi’s equity strategist team shows retail investors contributed only 6% of total trading volume in Mag 7 over the past five trading days, marking the lowest level in four years. This is a sharp contrast to the peaks of over 20% recorded between 2023 and 2024. Citi strategist Stuart Kaiser noted in the latest research report that, this trend indicates waning conviction in this long-favored sector.

Meanwhile, the performance of Mag 7 stocks this year has also disappointed. Bloomberg’s tracked index for the group has fallen 3.1% as of the close on Monday (June 29), while the S&P 500 index rose 8.7% over the same period. Some market participants have started jokingly referring to them as the "Lag Seven."

Notably, Vanda Research’s data further shows that, retail net buying of single stocks last week was lower than about 95% of readings since 2020, with investors tending to "rotate and take profits, rather than deploy new capital."

Retail Retreat: Participation at Four-Year Low

Citi data reveals a clear inflection point in the trend.

Mag 7 includes Alphabet (Google’s parent), Amazon, Apple, Meta, Microsoft, Nvidia, and Tesla—seven tech giants. During the peak between 2023 and 2024, retail trading frequently exceeded 20%; after entering 2025, the share mostly stayed above 15%; recently, it has plunged to just 6%.

Kaiser said the drop in trading volume began at the end of last year and has extended into 2026. From a broader perspective, retail interest in Mag 7 last week was lower than about 85% of trading days since 2022, reflecting a system-wide decline in enthusiasm, not just short-term volatility.

Overall retail trading activity is also weakening. Kaiser noted in the research report that overall retail trading volume fell 15% in June compared to the previous month, whereas total market trading volume increased by 12% over the same period—this divergence highlights the active pullback by retail investors.

Within Mag 7, Nvidia has suffered the most obvious retail withdrawal. Last week, retail trades accounted for 8.1% of total trading volume, down from 9.6% the week before.

Kaiser noted that retail investors had long bought heavily into this chip giant, but sentiment shifted after the outbreak of the Iran war. In March this year, retail investors net sold Nvidia stock for the first time since July 2025.

Tesla is the component stock with relatively the highest retail interest, accounting for 10% of total trading volume, but this figure is also near its lowest since 2022. In a sense, Tesla’s "10%" is more like a reference in which it is the "tallest among dwarfs," rather than a sign of genuinely strong demand.

The retreat of retail investors does not mean that risks have been released. Citi analyst David Chew’s team warned that, although the tech-heavy Nasdaq 100 index declined in June, overall investor positions in US tech stocks remain high, implying further downside risk for the sector.

Once the drivers of the bull market, the "Magnificent Seven" are now experiencing a rare period of relative stagnation—both retail investors voting with their feet, and institutions behaving cautiously, are suggesting to the market: The narrative logic for this sector may be quietly being rewritten.

Where Did the Money Go: ETFs, Crypto, Prediction Markets Split the Flow

Retail investors have not "gone flat", but are shifting their attention and capital to other channels.

Vanda Research points out that prediction markets, cryptocurrencies, sports betting, and high-liquidity trading platforms like Hyperliquid are now competing for "the same pool of retail speculative capital that was once almost exclusively devoted to meme stocks and single stocks."

Meanwhile, retail net buying of US-listed ETFs is slightly above the historical average, suggesting investors are moving from picking individual stocks to broader market exposure.

Kaiser also proposed several possible explanations: investors may prefer leveraging ETFs rather than single stocks for risk exposure; they may be putting more effort into prediction markets rather than stocks; additionally, rising gasoline prices and other living costs may be squeezing the tax refund funds available for reinvestment.

Risk Notice and DisclaimerThe market is risky and investment needs caution. This article does not constitute personal investment advice and does not take into account the specific investment objectives, financial situations, or needs of individual users. Users should consider whether any opinions, views, or conclusions in this article are suitable to their individual circumstances. Investing based on this is at your own risk. ```