According to JPMorgan data, retail investors are trading stocks at levels unseen since the 2021 meme stock craze. Small investors now account for 25% of U.S. stock trades, more than double pre-pandemic levels. The surge was fueled by expectations of a favorable regulatory environment under Donald Trump and a persistent buy-the-dip mentality. Analysts warn that the market’s frothy conditions could lead to a reckoning if the bull run ends. The S&P 500 has shown resilience, recovering quickly from sell-offs tied to AI bubble fears and Trump’s tariff announcement.
