Retail traders leaned on their 2025 playbook and bought the dip this week as market volatility surged. Stocks posted their worst day since October on Tuesday after President Trump threatened to take over Greenland and announced tariffs on eight European nations that opposed him. But the market rebounded on Wednesday after Trump announced a “framework” of a deal with NATO centered on U.S. strategic interests in the Danish territory. Big money turned to the “sell America” trade on Tuesday: sending U.S. equities and the dollar down, while bond yields and gold jumped. On the other hand, retail traders offered support for the stock market by continuing to buy in amid the selloff — the same strategy that helped power relentless gains in 2025, data shows. “As geopolitical developments cast fresh uncertainty over market sentiment this Tuesday, retail investors responded by stepping in strongly to buy the dip,” Arun Jain, head of U.S. equity quantitative strategy at JPMorgan, wrote to clients on Thursday. .SPX 5D mountain The S & P 500, 5-day Tuesday was the third biggest single day for retail trader buying in a year, JPMorgan said. Flows of dollars into stocks from individual investors hit $12.9 billion this week — nearly double the weekly average over the past 12 months and close to the level of buying seen in the wake of Trump unveiling higher tariffs last April, the bank …
