The S&P 500 fell over 10% last Thursday and Friday, one of the worst two-day sell-offs we’ve seen in market history.
In response, US investors did what they’ve come to do best — buy the dip.
Data from Bank of America published Tuesday showed the firm’s clients were net buyers of $8 billion worth of stock last week, the fourth-largest weekly inflow in its data going back to 2008.
The firm noted that all three of its client groups — institutions, hedge funds, and private clients — were buyers last week. Notably, its private client group (read: individuals) has been a buyer of stocks for 17 straight weeks.
This data is just one read from one firm on where money is flowing, but isn’t likely to be an outlier no matter how one goes about cutting the data. The simplest answer to questions about what investors have been doing during the tariff market crash, it seems, is “buying stocks.”
The market action Monday, in which a headline later proved to be not quite fully true sent stocks surging in a matter of seconds, suggests how eager investors seem to buy the dip and see the market recover from the tariff-induced plunge.
Initial data on how investors are putting money to work during this slide confirms.
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