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Individual investors net bought a record $4.7 billion worth of stocks on Thursday as new tariffs pummeled markets - MarketWatch

1. S&P 500 dropped 4.8%, marking its worst day since 2020. 2. Retail investors bought $4.7 billion in equities, the highest in a decade. 3. Investors prefer ETFs over single stocks in recent selloffs. 4. Retail portfolios down 12.9% while S&P 500 down 8.3% year-to-date. 5. Market sentiment is bearish with hints of long-term investor confidence.

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FAQ

Why Bearish?

The significant drop in the S&P 500 indicates ongoing market instability, recalling past downturns in 2020. The recent announcement of tariffs played a substantial role in negative investor sentiment as well.

How important is it?

The article highlights a behavioral shift among retail investors during downturns, which could influence S&P 500 volatility and recovery outlook.

Why Short Term?

Short-term recovery expected if retail buying persists; however, existing volatility creates uncertainty similar to March 2020.

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