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Investors buy the dip in US stocks as Omicron drives market volatility

Traders took advantage of last week’s stock market decline to scoop up US stocks amid doubts about the new variant of the Omicron coronavirus and the future direction of monetary policy.

According to data provider EPFR, investors poured $ 10 billion into equity funds holding US stocks from the week to Wednesday, building on a 10-week inflow.

According to another report compiled by VandaTrack, retail investors were particularly active in buying US stocks on days when the market was turbulent.

World stocks I had the most difficult fall in over a year On November 26, the S & P 500 fell by more than 2%, raising concerns about variants of the Omicron coronavirus. However, retailers bought more than $ 2 billion in US stocks that day, VandaTrack data show. A similar situation occurred this week when retailers raised $ 2.2 billion in US stocks during a slide triggered by hawkish comments from Federal Reserve President Jay Powell.

Stocks such as Apple, Advanced Micro Devices and Microsoft all benefited from the shift by retailers.

Such buying activity reflects trading patterns after the emergence of delta variants earlier this year, when stocks around the world fell in response to concerns about increased infection.

The recent surge in stock purchases among retail investors has shown that buying dips, that is, investing in stocks that have recently declined in value, remains a popular strategy among amateur traders. Suggests.

U.S. retail investors pile up on sold-outs caused by Omicron

Nicholas Colas, co-founder of research house DataTrek, said individual investors have become “an important part of the US stock market ecosystem.” The attention of these investors has grown during the pandemic as more and more traders are using apps such as Robin Hood to bet on stock prices.

Still, VandaTrack data show that total retail volume is “significantly less” than in the early stages of the pandemic. This is mainly due to the decrease in the number of day traders using retail brokers since the beginning of the year. “What’s left is a stubborn bull,” Vanda Track said.

Investors buy the dip in US stocks as Omicron drives market volatility Source link Investors buy the dip in US stocks as Omicron drives market volatility

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