Retail buyers continued their dip buying pattern through recent volatility, when fully announced in trading sessions after Moody downgraded its US credit rating. Individual investors purchased net stocks from 12:30pm to 12:30pm ET on Monday, according to data from JPMorgan’s Trading Desk. They ended the session with a net purchase of $5.4 billion. The retail cohort was responsible for 36% of total trading volume on Monday, marking another record, JP Morgan said. After the rating of the .SPX 1D Mountain S&P 500 Moody lowers the US sovereign credit rating from AAA to AA1 down one notch, their aggressive purchases are the best possible after citing the growing burden of funding the federal government’s fiscal deficit and the increasing costs of rising existing debts. The S&P 500 slipped around 1% in low session sessions, but thanks to record retail purchases, it was 0.09% gain in six consecutive winning sessions. The “Buy the Dip” mentality is well interpreted on Main Street this year. Retail Traders Net purchased $4 billion in April during tariff turmoil, setting a new record for the largest inflow each month. Their purchase came as Wall Street professionals were worried about the recession caused by President Donald Trump’s protectionist policy and the transition from US assets. Still, Moody’s debt downgrades bond prices and sent high yields on Monday, with 30-year US bond yields exceeding 5% and 10-year yields exceeding 4.5%. “US stocks followed a similar path last week, with daily lows experienced before the MKT, surpassing another leg after the UK/EU approached,” JPMorgan said in a memo Tuesday. “This might point to retail investors and companies buying back as a progressive buyer.”
