U.S. stocks fell sharply on low volume, Wall Street is "numb," only retail investors are still bottom-fishing

U.S. stocks plummet, but Wall Street remains "calm."

Overnight, the S&P index fell sharply again, poised to create the worst monthly performance since September 2022, the dollar plunged, and gold prices hit new highs. However, the trading volume in the U.S. stock market that day was far below the average level in April, at about 13.5 billion shares, a significant decline compared to the normal 20 billion shares.

Compared to the market's wild fluctuations earlier this month—such as the S&P plummeting over 10% on April 3 after Trump announced tariff policies, or rebounding 9.5% a week later when he announced a delay in those policies—investment professionals and fund managers currently feel quite calm.

Dave Lutz, who has 30 years of market experience, commented:

“This is the quietest and calmest 4% drop trading day I can recall, with almost no stock and options trading volume.”

Market volatility continues, retail investors keep buying the dip

Despite the poor performance of the S&P, there are no signs of widespread panic in the market, and retail investors continue to buy the dip.

According to data from Emma Wu, a global quantitative and derivatives strategist at JP Morgan, as of 2:30 PM New York time on Monday, retail traders net bought $2.2 billion in stocks, significantly higher than the average level over the past month.

Brad Conger, Chief Investment Officer at Hirtle Callaghan, stated:

“I don’t feel any panic at all, just buyers on ‘strike.’”

“The current expected price-to-earnings ratio for the S&P is about 20 times; if it were panic, it would probably be around 16 times.”

Brad Conger noted that current investors are “like in a dark room full of sharp glass,” and the best course of action is to stand still and hope the lights come back on.

Nevertheless, the current market is experiencing one of the most volatile periods on record.

Relevant data shows that since the beginning of the year, the S&P has had an average of one 2% up or down fluctuation each week, a significant increase compared to the long-term average frequency of twice a month. Additionally, the Chicago Board Options Exchange Volatility Index (VIX) hovers around 35, a level that typically indicates market tension.

As the U.S. earnings season is about to fully unfold, more investors may remain on the sidelines, with the market particularly focused on corporate outlooks and capital expenditure plans rather than profits themselves.

Dave Mazza, CEO of Roundhill Financial, stated:

“There isn’t much good news right now, and investors are less willing to take risks. The uncertainty of trade policies combined with Trump’s criticism of Powell is too heavy for an already turbulent market.”

Risk warning and disclaimer

The market has risks, and investment requires caution. This article does not constitute personal investment advice and does not take into account the specific investment objectives, financial situation, or needs of individual users. Users should consider whether any opinions, views, or conclusions in this article are suitable for their specific circumstances. Investing based on this is at your own risk