The day trading bonanza that took Wall Street by storm early in 2021 has cooled sharply as US authorities lift social curbs and amateur investors spend more time away from home.
An army of have-a-go traders armed with no-cost trading apps propelled “meme” stocks to lofty heights in the first months of this year, in a move so vigorous it prompted a Congressional inquiry into core market issues like trade settlement, and the links between brokers and market makers.
But as large portions of the US economy begin to reopen, data have begun to signal a fading appetite for the same type of intense trading that triggered volatility in many shares in January and February.
“The rise was spectacular, but the fall has been equally spectacular,” said Steve Sosnick, chief strategist at Interactive Brokers. “The casual investor, or the investor who conflated gambling with investing, they’ve moved on to other things. More people are heading…