Retail Investors Turn More Bearish as Tech Volatility Tests Nerves — Evening Brief – 02.27.26
Individual investor sentiment shifted more defensive in late February, reflecting a market grappling with uneven equity performance and heightened macro sensitivity. The latest weekly survey from the American Association of Individual Investors (AAII) shows bullish sentiment fell to 33.2% for the week ended February 25, down from 34.5% the prior week. Meanwhile, bearish sentiment rose to 39.8%, up from 36.9%.
Neutral sentiment—expectations that stock prices will remain essentially unchanged over the next six months—edged lower to 27.0% from 28.5%.
The shift comes as markets navigated mixed crosscurrents. U.S. equities fluctuated during the week, with technology shares facing bouts of weakness even as select segments staged rebounds. Earnings developments, including closely watched results from Nvidia, kept investors focused on AI-driven growth narratives and valuation sensitivity.
Globally, performance diverged. Parts of Asia pushed to record highs, while European markets softened after touching fresh peaks, weighed in part by renewed tariff concerns and geopolitical developments.
Defensive positioning gained traction at times. Bonds outperformed equities during risk-off stretches, and gold attracted safe-haven inflows as volatility resurfaced. Market breadth remained uneven, reinforcing selective participation rather than broad-based risk appetite.
The weekly AAII survey measures retail expectations for market direction over the next six months. The latest readings suggest that while outright pessimism is not extreme, caution is building—particularly as investors assess policy risks, geopolitical developments and the sustainability of technology-sector leadership.