US stock market growth over past month was driven by individual investors

The US stock market’s significant rebound over the past month was mostly driven by individual investors buying. Meanwhile, professional money managers ditched US assets on fears of the country’s slower economic growth, Bloomberg says. 

The news agency reports that the S&P 500 index has jumped 14% since hitting the low on April 8. 

According to Bank of America, individual-investor clients were purchasing stocks for 21 consecutive weeks through May 2, the longest buying streak in the company's history since 2008.

At the moment, traders have lifted their bearish hedges, systematic funds have resumed buying, and retail investors continue to purchase stocks in all sectors. These factors prompt the US stock market to rise in the short term, Bloomberg says. 

The money management firm Cohalo also forecasts stocks of American companies to rally in the coming weeks, regardless of Federal Reserve monetary policy or global trading conditions.