Retail traders have surged back into the market, driving the S&P 500 past 7,000 points for the first time since January. After a brief pause during the Iran conflict, investors returned to the rally, buoyed by AI‑driven tech and high‑volatility picks favored by mom‑and‑pop investors.

A former sneaker brand’s jump into artificial intelligence produced a 582% surge in one day, while quantum‑computing names like IonQ and D‑Wave have climbed more than 40% this month. The Roundhill Meme Stock ETF (MEME) has jumped 51% since March 31, reflecting a return of “animal spirits” among Retail Traders.

The rally lifts the broader equity market, with a Goldman Sachs basket of retail‑favored stocks up 22% since late March. Oil prices remain volatile, trading above $90 a barrel, tightening inflation expectations and complicating the monetary policy outlook after the latest CPI spike.

Retail buying now dominates, with Barclays’ excess flow monitor turning sharply higher since April 8. Options betting on near‑term upside are in demand, and the April 15 tax filing deadline may trigger larger refunds under the Trump administration’s tax package, keeping momentum strong for the coming month.