Investor positioning in defensive stocks, including health care, consumer staples, and utilities, has fallen to its lowest level since 2000, according to Bank of America and other market observers. Meanwhile, US stocks are experiencing a broadening rally beyond the so-called 'Magnificent Seven' tech giants, with retail investors playing a significant role. Data from JPMorgan indicates that retail investors have poured more than $50 billion into US equities since the April 8 market low, surpassing the $46 billion invested during the March-June 2020 period. Despite this influx, retail investors' portfolio weights in the Magnificent Seven have declined from 10% last summer to approximately 1.5% recently. Hedge funds have taken a bearish stance on Brent crude oil, increasing short positions to the highest level in eight months amid expectations of additional OPEC+ supply and potential Iranian market re-entry. Hedge fund shorts on Nasdaq stocks have reached 41% of open interest, the highest in four years, while short interest on the median S&P 500 stock hit a seven-year high of 2.3%. This contrasts with retail investors, who now control over 43% of the market and exhibit short-term, high-risk trading behavior that some analysts say is distorting prices. Overall, the S&P 500 has shown an average return of 0.36% following down days in 2025, the highest on record, reflecting retail investors' consistent buying of dips. Institutional investors remain cautious and bearish, while retail investors continue to drive market momentum with automated trading strategies and increased risk appetite.