Household Demand Supports U.S. Stocks as Retail Trading Slows

Goldman Sachs says household demand remains a source of support for U.S. stocks even as retail investors have sharply reduced their stock trading in recent months. The bank’s assessment comes as selling pressure increases and the supply of shares grows.

U.S. households are the largest owners of domestic equities. Their exposure includes stocks held directly, as well as investments through funds and retirement accounts.

Consumer confidence, savings, employment and interest rates may affect household investment behavior. Goldman Sachs also identified potential economic disruption from artificial intelligence as a factor that could influence how households invest.