Retail traders continue to soak up US stocks despite economic storm clouds looming.
The SPX 500 is now elevated above 6,265 with the clear support now at 6,132. This level may get tested before any upside is possible.
JPMorgan Chase CEO Jamie Dimon has said the US economy may soon “deteriorate.”
“I think there’s a chance real numbers will deteriorate soon,” Dimon said at a conference on Tuesday. His assessment was based on the idea that pandemic-era government spending and monetary policy have now faded, adding to fears of a downturn.
Dimon pointed to weaker numbers from consumers and some negative sentiment among business leaders after the Trump administration’s tariff policies.
“Neither consumers nor businesses ever pick the inflection points,” and the economy’s “soft landing” was likely to weaken, he said.
But retail investors are loading up on every market dip with net inflows from individuals into single stocks and exchange-traded funds reaching $137.6 billion in the first half of this year. If stocks were to drop again, those levels may be at risk if the bounce is not as sharp as it was from April.
