Stock Bullishness Among Retail Traders Hits Highest Since 2021

Individual investors have warmed up to the idea that US equities can continue to rally, with the S&P 500 on the doorstep of a bull market.

After months of pessimism among retail traders, the closely watched bull-bear spread from the weekly American Association of Individual Investors (AAII) survey flipped to 20, the most bullish stance since November 2021, and up from a -7.7 reading a week earlier. The percentage of investors with a bearish view over the next six months fell below 25% for the first time since late 2021.

The return of optimism comes after the US debt-ceiling ...