Retail Traders Post Worst Day Since April as Tech Rally Stumbles

For the day traders who pile into the hottest stocks, Tuesday was the worst session since the April chaos caused by Donald Trump’s trade war.

The Retail Favorites Index — a Goldman Sachs Group Inc. basket of stocks heavily owned by non-professional traders — was hit particularly hard by the selloff that followed a disappointing earnings report from Palantir Technologies Inc. and a filing showing a famous hedge fund manager made bearish wagers last quarter on the stock and the chipmaker Nvidia Corp.

That, as well as a slump in Bitcoin that added to the pressure on individual investors, ...