Retail investors pulled back on technology ETFs this week, but buying in semiconductor stocks did not disappear, according to JPMorgan’s retail radar report dated Oct. 14, 2026.
The bank said retail investors recorded $3.4 billion in net inflows for the week, below the 12-month average of $6.7 billion. ETF inflows reached $3.2 billion, while single stocks attracted just $200 million. Wednesday’s retail flow ranked in the 7.5th percentile, and the full week came in at the 5th percentile, a sign that retail activity had weakened.
Retail flows weakened as tech ETFs flipped into outflows
JPMorgan said retail investors became net sellers of technology ETFs, with selling at 4%. Positioning fell from the 73rd percentile last week to the 4th percentile. The move was driven by SOXL and SOXX. SOXL saw outflows of 0.9 standard deviations, while SOXX posted outflows of 2.1 standard deviations. Tech ETFs as a group recorded outflows of 1.8 standard deviations, and semiconductor ETFs also came under pressure.
Momentum products were weak as well. Momentum ETFs saw outflows of 1.0 standard deviation, and MTUM posted outflows of 0.8 standard deviations. JPMorgan said the momentum factor has weakened this month, with the long side, which is heavy in semiconductors, underperforming the short side, which is heavier in software.
In the broader market, the S&P 500 fell on Wednesday, the Nasdaq 100 dropped 2%, and the VIX rose to 16.9. On the macro side, core CPI came in at 0.33% month over month and 2.6% year over year, above expectations. JPMorgan analysts said they expect core PCE at 0.31% month over month and 3.1% year over year, enough to put the October FOMC meeting into play, though the bank still expects the next rate hike in December.
Semiconductor ETFs were sold, but chip stocks still drew buyers
JPMorgan said the semiconductor sector fell 9% this week, and retail investors did not maintain the previous week’s appetite for tech ETF buying. Still, stock-level flows told a different story.
Retail buying was concentrated in technology and communication services, while every other sector saw net selling. Demand was led by the Mag7 and SpaceX, and demand for the Mag7 was in line with its one-year average. Within tech, retail investors sold software and bought semiconductors and hardware.
At the single-name level, NVIDIA drew $942 million in buying, SanDisk saw $238 million, and Broadcom attracted $139 million. Retail investors sold $123 million of Micron, $119 million of Palantir, $70 million of AMD, $64 million of Moderna, and $55 million of CrowdStrike. JPMorgan said buying was concentrated in NVIDIA and SanDisk, while selling centered on Micron and AMD, pointing to clear divergence within semiconductors.
Retail positioning ran against institutional crowding
JPMorgan said retail selling in technology ETFs contrasted with institutional positioning. Its crowding indicator for semiconductors versus software stood at the 96.1st percentile for semiconductors and the 44.1st percentile for software. Retail investors were buying semiconductors and selling software, the opposite of institutional positioning.
The bank also said momentum crowding was at the 94.4th percentile, while laggard-factor crowding stood at the 27.2nd percentile. Momentum was tilted toward semiconductors, while the laggard factor leaned toward software. JPMorgan added that the long side of the momentum trade underperformed the short side this month, showing weakness in that factor.
The report said retail investors had overweighted semiconductors and memory in May, then shifted toward hyperscale companies. Despite recent losses, JPMorgan said the retail technology portfolio was still outperforming the broader market. The bank added that retail buying in semiconductor stocks, set against historically elevated institutional crowding in the sector, is a divergence worth watching.
Bond ETFs saw modest inflows as earnings season turns to financials and industrials
Outside technology, fixed-income ETFs posted modest inflows. High-yield debt, investment-grade corporate bonds, and multisector credit products led the gains. Utilities have been sold continuously since the middle to late part of August, and industrials have been sold since earnings season began.
JPMorgan said 62 S&P 500 companies are scheduled to report earnings over the next seven days, representing 14% of the index by market capitalization. The reports are concentrated in financials and industrials. The bank specifically mentioned Wells Fargo, Citigroup, Morgan Stanley, Goldman Sachs, BlackRock, and Johnson & Johnson as companies set to report, and said changes in retail positioning in financials will be worth tracking.
Report note
The source article said the piece was a compilation and interpretation by Chaoxiang Research of a third-party broker report from JPMorgan dated Oct. 14, 2026, combined with public market information. It also said that any ratings, target prices, earnings forecasts, and related judgments cited in the report were the views of the broker’s analysts, represented only their institution, did not represent the views of Chaoxiang Research, and did not constitute investment advice.
The source article also said markets involve risk, decisions should be made independently, and the article should not be used as the basis for buying or selling any securities.
