Investors who bought the highest returns in more than 30 years in 2025 were immediately rewarded.
Research by the Custom Investment Team shows that the S&P 500 (^GSPC) has risen by an average of 0.36% in the next trading this year as the index fell in one day. According to Bespoke, the data goes back to 1993, and the only other stocks rebounded even in a positive rebound was 0.32% of the average rise after a decline in 2020.
As Custom written on X, the data proves that the “Buy The Dip” mentality has been at the forefront of market narratives in 2025. Recently on Tuesday, the number rose more than 2% when the S&P 500 rose more than 2% last Tuesday, down 0.7% in trading before the holiday weekend last week.
The catalyst for Tuesday's rally was when President Trump called on his previously threatened tariffs, a key driver of many rebounding days this year.
“We're seeing our clients buy in large quantities during April,” Steve Sosnick, chief strategist at Interactive Broker, told Yahoo Finance. “They're smart. They haven't given up on their faith. Over the past few years, buying has worked very well for them, and it's really very well for them.”
Read more: Latest news and latest news about Trump tariffs
The S&P 500 has risen nearly 19% since the latest bottom of the market on April 8. Retail investors have been leading the allegation for the most part. Data from JPMorgan quantitative strategist Emma Wu shows that retail investors have invested more than $50 billion in U.S. stocks since the April 8 low. This surpassed the $46 billion retail investors that were put into the market between March and June 2020.
“The immersion strategy in early April has obviously paid off,” Wu wrote.
Similar data from Vandatrack showed that Trump saw “retail investors’ record sales traffic” a week after the April 2 “Liberation Day” tariff announcement, including a $3 billion net purchase on April 3, the largest daily total since Vandatrack began collecting this data in 2014.
Josh Schafer is a reporter for Yahoo Finance. Follow him on X @_joshschafer.
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