Retail traders bought $4.1 billion of U.S. Stocks during the first 3 hours of today's trading sessions, the most in history 🚨🚨🚨 pic.twitter.com/IooUGeT3xI
— Barchart (@Barchart) May 20, 2025
Retail traders made history on Monday, pouring a record $4.1 billion into US stocks by midday, reversing a 1 percent decline in the S&P 500 Index. The buying spree came in response to Moody’s downgrade of the US credit rating, a move that initially rattled markets before individual investors stepped in to stabilize the selloff. JPMorgan Chase & Co. analysts confirmed that this was the largest retail purchase volume ever recorded for that time of day, surpassing the $4 billion threshold by noon for the first time.
The downgrade, which lowered the US credit rating from Aaa to Aa1, was expected to trigger a deeper market correction. Instead, retail investors saw the dip as an opportunity, aggressively buying into stocks across sectors. The S&P 500, which had dropped early in the session, managed to recover as retail traders flooded the market with fresh capital.
The resilience of individual investors is reshaping market dynamics. Historically, institutional investors have dictated market trends, but retail traders are increasingly influencing price movements. Their willingness to buy into declines has created a new layer of support, preventing deeper selloffs and fueling rapid rebounds.
Wall Street strategists were quick to weigh in. Morgan Stanley’s Michael Wilson advised clients to buy any dips, arguing that recession risks have diminished following the US-China tariff agreement. HSBC’s Max Kettner echoed the sentiment, calling the market pullback an opportunity to scale up exposure. Despite Moody’s downgrade, analysts believe the broader rally remains intact.
The surge in retail trading volume highlights a shift in investor behavior. The rise of commission-free trading platforms and social media-driven investment strategies has empowered individual traders to act swiftly. Their ability to counter institutional selloffs is becoming a defining feature of modern markets.
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