In April 2025, US stock markets experienced a sharp decline, with approximately $6.6 trillion in market value lost over two business days amid escalating trade tensions. Despite this downturn, individual retail investors aggressively purchased stocks during the dip, demonstrating resilience and confidence. This strategy paid off as the market rebounded with an 18% rally, allowing retail investors to realize gains. Meanwhile, hedge funds and professional investors largely sold off their holdings during the market rout, only to engage in rapid short-covering afterward—the third fastest pace since 2022—contributing to one of the largest net buying surges in global equities in at least five years, according to Goldman Sachs data. North America was the most actively bought region. Market volatility and investor fear collapsed as bullish sentiment returned, driven primarily by retail investors who capitalized on the market downturn while institutional investors initially exited positions.