Don't just focus on watching the rebound, the "bottom-buying army" of US stocks has quietly slipped away.

As the most steadfast "bottom-fishing army" in recent years in the US stock market, American retail investors are facing a turning point of risk-return imbalance. According to Vanda Research data, retail investors recorded their first net selling day for individual stocks since November 2023, with a single-day selling volume of $20.6 million. This change coincided with a rebound in the S&P 500 index - prior to this, Trump had withdrawn his threat to bomb Iran's energy infrastructure, temporarily improving market sentiment. During the period of ongoing Middle East conflicts, retail buying interest has been continuously shrinking. Although these investors returned to the buying camp on Tuesday, in the current pressure on the US stock market, the waning enthusiasm of this group of main funds that have been buying on dips for the past few years no doubt worries the market. Vanda's macro strategist Ruta Prieskienyte pointed out in a report on Tuesday, "Since early March, retail investor participation has been continuously decreasing, while systematic funds are deleveraging, and pure long funds and hedge funds are only maintaining moderate buying." At the same time, more and more signs indicate that individual investors' confidence in the stock market outlook is weakening. Citadel Securities' index measuring retail risk appetite has significantly declined from its peak in February. During the bull market of the past three years, retail buying interest has repeatedly played a stabilizing role during market fluctuations. Now that this force is diminishing, combined with its increasing influence on Wall Street, it may bring new pressures to the market. JPMorgan data shows that retail fund inflows hit a historical high last year, almost double the five-year average, up 17% from the previous record in 2021, and nearly 60% higher than the level in 2024.