The U.S. stock market on Monday witnessed a historic moment for retail investors. According to the data from Bijie.com, as of 12:30 p.m. New York time on Monday, individual investors had net bought US$4.1 billion in U.S. stocks, the highest level ever during this period, and broke the $4 billion mark before noon for the first time. This astonishing buying wave successfully reversed the 1% drop in the S&P 500 index caused by Moody's downgrading the U.S. credit rating last weekend.
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The S&P 500 fell nearly 1.1% within minutes of the opening of the U.S. stock market, but it had fully recovered its losses by the afternoon and was basically the same as the closing price on Friday as of 2:50 p.m. XBIT (dex Exchange) analysts said, More striking is that retail trading accounted for 36% of total trading volume, surpassing the historical high in late April and reaching an unprecedented level.
XBIT (DEX Exchange) trading director pointed out: "Retail investors have deeply realized the mistakes of missing the policy support for the stock market recovery before, and they are almost unwavering in their commitment to never make the same mistake again." This firm buying determination continues the trend of several weeks. During the trough of the tariff-induced sell-off in April, retail investors snapped up stocks at a record pace, and now they are enjoying the rise as the index enters a bull market.
In sharp contrast to the active buying of retail investors, Wall Street strategists generally shrugged off Moody's downgrade on Monday and advised clients to continue to increase their holdings of stocks. XBIT (dex Exchange) analysts believe that the trade truce reduces the likelihood of a recession and that investors should buy stocks that have fallen due to downgrades on dips. Strategists said the team sees any decline in risky assets as an opportunity to increase exposure.
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According to the data from Bijie.com, single stocks accounted for $2.5 billion of retail investors' purchases on Monday, while ETFs accounted for $1.5 billion. Tesla and Palantir Technologies Inc. became the most popular targets for retail investors, receiving inflows of $675 million and $439 million, respectively. At the same time, retail investors also invested funds in Bitcoin ETFs, but maintained a net sell on Nvidia.
While the U.S. stock market rebounded strongly, the Bitcoin market experienced a dramatic roller coaster ride. Yesterday, Bitcoin once attacked $107,000 in early Asian trading, then fell back to $102,000, and was reported at $105,647 before press time. This sharp fluctuation caused open positions to be "bloodbathed" again. According to the data from Bijie.com, $102 million of Bitcoin positions were liquidated in the past 24 hours, and $112 million of Ethereum positions were liquidated.
This differentiation reflects the differences in the interpretation of the current economic environment by different market participants. Retail investors are more concerned about policy benefits and changes in market sentiment, while institutions may pay more attention to long-term fundamental factors. As the direction of the Federal Reserve's monetary policy and market expectations for the U.S. economic outlook change, this differentiation between retail investors and institutions may continue for some time.
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