JPMorgan: Strong Equity ETF Inflows Show Retail Buy-the-Dip Support for AI Trade

The signal here is less about the size of the flows than about who is doing the buying and what it implies for the AI trade's fragility. Retail leverage through single-stock and leveraged ETFs is a fast-moving, sentiment-driven bid, and JPMorgan is effectively crediting it with cushioning a selloff rather than fundamentals doing so. That makes the durability of the AI trade dependent on a cohort that tends to exit quickly when momentum turns. Whether leveraged inflows keep offsetting institutional de-risking, and whether inverse ETF outflows reverse, is the open question worth tracking.