Retail Investors Buy the Dip: $3 Billion Injected into Stocks During April 2024 Tariff Sell-Off

Despite market volatility caused by tariff announcements in early April 2024, retail investors seized the opportunity to "buy the dip." According to VandaTrack, they injected $3 billion into the stock market on April 3, 2024. This was the largest daily total since 2014.

The S&P 500 initially experienced a sharp two-day decline. However, it quickly rebounded, achieving its best single-day rally since 2008 on April 9, 2024.

Bank of America reported that its clients were net buyers of $8 billion in stocks during the week of the initial tariff announcements. This marked the fourth-largest weekly inflow since 2008. Deutsche Bank also noted equity inflows of nearly $50 billion last week, including $31 billion into US stocks, demonstrating continued risk appetite despite trade tensions.