The implementation of tariffs from US administration on April 2 worsen the situation on financial markets and diminished the market price of American stocks by $6 trillion. It happened due to massive dumping of stocks by hedge funds, Wall Street “smart money”, and other professional investors. In turn, many independent investors decided to the contrary and increased the purchase of securities in spite of the general sentiment.
This decision turned out successful because the United States President Donald Trump suspended most of the duties a week after their release. The subsequent easing of tensions between the US and China and the influx of new investments from non-institutional investors led to an 18% increase in the S&P 500 Index.
According to the JPMorgan data as of April 28–29, the market share controlled by individual investors in the country reached 36%, its highest level ever recorded.
Currently, the S&P 500 index is going to reach its maximum. As stated by Larry Tabb, the head of Bloomberg Intelligence, retail investors will account for about 19.5% of the trading volume of US stocks this year, compared to 17% in 2024.