The S & P 500 is up more than 6% over the past three months, and retail investors are finally getting in on the action. Data compiled by Vanda Research shows retail investors recently bought $1.48 billion in U.S.-listed stocks — a three-month high. The S & P 500 fell 0.6% Wednesday ahead of a key House vote on a deal that would raise the U.S. debt ceiling. “After sitting broadly on the sidelines since the end of February, retail investors appear to have bought Wednesday’s relatively small dip in equity markets with conviction,” Vanda senior vice president Marco Iachini wrote. “One day does not a trend make, but it does make us wonder if retail traders are on the precipice of joining this equity rebound, at last. We believe there’s a growing chance they will.” Iachini added that the macro outlook for stocks is improving as a tech rally driven by excitement over artificial intelligence broadens, uncertainty around the U.S. debt ceiling subsides and new data showing the economy is resilient. “Looking ahead, a debt-ceiling resolution, resiliency on the macro front (e.g., see today’s ADP jobs report), and market momentum will likely see retail traders break the last three-month lull in participation, in turn helping the stock market grind higher over the first half of summer,” he said. Some of that momentum may already be seeping into the market. The S & P 500 popped about 0.9% on Thursday and was headed for its best day since mid-May. .SPX YTD mountain SPX year to date
