Retail investors lead stock market rally

Retail investors are driving a historic stock market rally in April 2026, with their favorite stocks outperforming mutual fund favorites by 11 percentage points. This performance puts retail investors on track for their best relative month since November 2020, following five consecutive months of relative gains. The trend highlights the growing influence of individual investors in the US financial markets. The rally comes amid record-high market valuations and significant shifts in investment flows.