Buyers of the retail trade came in full force in the trade session after Moody's downgrade of American creditworthiness, which continues their dip-buy pattern during the recent volatility. Individual investors bought on Monday for a net $ 4.1 billion in shares from opens to 12:30 pm et, the largest level ever before the time of the day and a more than 11 standard deviation movement, according to data from the JPMorgan trade desk. They closed the session with a net purchases of $ 5.4 billion. The retail cohort was also responsible for 36% of the total trade volume Monday, which marked another record, JPMorgan said. .SPX 1D Mountain S&P 500 their aggressive purchase came after the rating of Moody had lowered the sovereign creditworthiness of the United States, one notch to AA1 of AAA, the highest possible, stating the growing burden of the financing of the budget deficit of the federal government. The S&P 500 fell around 1% with its session low, but ultimately squeezed a profit of 0.09% for his sixth consecutive winning session thanks to the Retail purchases record. The “Buy the Dip” mentality is well anchored this year in Main Street. Retail traders just bought $ 40 billion during the rate chaos in April and set a new record for the largest monthly inflow. Their purchase even came when Wall Street professionals were concerned about a recession and a shift of American assets because of the protectionist policy of President Donald Trump. Nevertheless, the debt down grade of the Moody pressed the prices of the bond under pressure and the yields higher Monday with the 30-year-old American bond return that jumped above 5% and the 10-year return by 4.5%. “US shares followed a similar path from last week where the daily lows were experienced in the pre-MKT, open higher and then see another leg higher after the UK/EU close by,” Jpmorgan said in a note on Tuesday. “This may indicate retail investors and business sales as incremental buyers.”
