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Iran war volatility prompts retail investors to sell stocks but stay invested in other assets

Market News
25 Mar 2026
Market Watch
View Source
Bearish
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Retail investors have started selling single stocks for the first time since 2023 due to market volatility caused by the Iran war and rising oil prices. The S&P 500 has dropped about 6% from its January peak, and market uncertainty remains high with elevated volatility indexes. Despite selling stocks, retail investors are not exiting the market but are instead increasing their exposure to other asset types. This shift highlights cautious behavior amid geopolitical tensions and economic uncertainty.

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