Retail investors are buying heavily into TSL, Palantir, and Bitcoin ETF, becoming the biggest winners of Trump's Liberation Day.

Retail investors launched a record-breaking Buy the Dips frenzy on Monday, reversing the decline in US stocks triggered by Moody's downgrade of the US credit rating at the end of last week. According to data from JPMorgan, on Monday, retail investors aggressively purchased favored TSL and Palantir, and also invested cash into Bitcoin ETF, becoming the biggest winners after Trump's Liberation Day.

Retail investors have been aggressively buying US stocks since April.

Affected by Moody's downgrade of the U.S. credit rating last weekend, the S&P 500 index fell nearly 1.1% in early trading on Monday, but had turned to an increase by the afternoon, and as of 2:50 PM New York time, trading prices were basically flat. Retail investors accounted for 36% of the trading volume, surpassing late April, reaching a historical high.

According to a report by Bloomberg citing data from JPMorgan, as of 12:30 PM New York time, individual investors net purchased $4.1 billion in U.S. stocks, reaching the highest level for that period, and for the first time ever, breaking the $4 billion mark at noon.

This buying momentum continues the trend of retail investors who have been aggressively buying US stocks for several weeks. During the bear market triggered by tariffs in April, retail investors rushed to purchase stocks at a record pace. Now, with the index up 20% and entering a bull market, they are enjoying the upward trend. Meanwhile, the so-called "smart money" is taking a wait-and-see approach.

Wall Street analysts: Not worried about Moody's downgrade, Buy the Dips

On Monday, Wall Street analysts largely dismissed Moody's downgrade of its rating and advised clients to continue buying stocks. Morgan Stanley strategist Michael Wilson stated that investors should buy during the downturn in the U.S. stock market triggered by the rating downgrade, as the trade truce between the U.S. and China reduces the likelihood of an economic recession. HSBC Holdings' chief multi-asset strategist Max Kettner mentioned that his team views any decline in risk assets as an opportunity to increase exposure.

Vincent Lorusso, CEO and Portfolio Manager of Clough Capital Partners, stated: "I think what retail investors should intuitively do is allocate funds to places that can deliver the most attractive risk-adjusted returns." He mentioned that given the backdrop of declining inflation and strong balance sheets for businesses and consumers, buying stocks now is a wise move.

retail investor buy TSL, Palantir and Bitcoin ETF

According to data from JPMorgan, on Monday, retail investors purchased a total of $2.5 billion in individual stocks, while the buying amount for the exchange-traded fund (ETF) was $1.5 billion. Investors rushed to buy favored stocks like TSL and Palantir, with inflows of $675 million and $439 million respectively. They also put cash into Bitcoin ETF, while continuing to be net sellers of Nvidia.

(Palantir's new valuation reaches 281 billion USD, joining the ranks of the highest valued tech companies in the US)

This article discusses how retail investors are making significant purchases of TSL, Palantir, and Bitcoin ETF, becoming the biggest winners on Trump Liberation Day. It first appeared in Chain News ABMedia.