Reddit Debates Why Every Dip Has Been Getting Bought Instantly: 'Every Single Dip Just Gets Eaten Alive Within Hours'

The stock market is filled with uncertainty at any given moment, but tariffs have accelerated volatility. Stocks stumbled out of the gate in 2025, but it looks like a recovery is in the works.

The S&P 500 is up by more than 10% from its 2025 low and is only down by 4% year-to-date. That's a far more optimistic picture than when it was down by 15% year-to-date in early April.

Someone in the Investing subreddit was confused about this recovery and sought some clarity. The individual wondered why "we keep seeing full reversals after negative news." 

"Every single dip just gets eaten alive within hours," the Redditor claimed. 

Don't Miss:

• Deloitte's fastest-growing software company partners with Amazon, Walmart & Target – Many are rushing to grab 4,000 of its pre-IPO shares for just $0.30/share!
• Hasbro, MGM, and Skechers trust this AI marketing firm — Invest before it's too late.

Redditors jumped into the comments to dissect recent market events and determine why the stock market has been bullish lately.

Today's Best Finance Deals

Optimism Is Brewing 

One commenter suggested that President Donald Trump may not follow up with as many of his tariffs, or he may secure favorable trade deals.

"Nobody seems to want to get out because the expectation is that Trump’s not going to do the stuff he’s said he’s going to do. So there’s a lot of money placing a bet on that," the commenter said.

Trump recently reached a trade deal with the U.K. and suggested that an 80% tariff on China may be sufficient. That's down from the 145% tariff he had in place earlier. 

Both of these developments are reducing the uncertainty around tariffs, and it's those trading policies that brought the stock market to its knees in early April. Any reductions to this headwind will bring more people to the stock market.

Trending: Nancy Pelosi Invested $5 Million In An AI Company Last Year — Here's How You Can Invest In Multiple Pre-IPO AI Startups With Just $1,000.

Limited Options

People want to invest their money and see it grow over time. The stock market has been a great resource for many years, but beyond that, the options are limited. 

"Nobody wants to get out because there’s nowhere else to put their money," one commenter stated. 

While other assets like real estate are available, these investments often require more capital and knowledge. You don't have to know much about the stock market to invest in an ETF that follows a benchmark like the S&P 500. However, it requires a lot more knowledge to buy the house that's for sale in your area and convert it into a rental property.

The stock market has a smaller learning curve, an easier path to entry, better liquidity, and low capital requirements. That combination is pretty hard to beat.

See Also: Invest where it hurts — and help millions heal: Invest in Cytonics and help disrupt a $390B Big Pharma stronghold.

Market Irrationality

One Redditor believes this relief rally is more of a dead cat bounce than a meaningful shift. 

"It’s a sign of irrational exuberance when stocks no longer trade on fundamentals but [on] mere speculation and unrestrained optimism. It’s going to end, and probably harshly," the Redditor stated. "That’s not a license to sell everything and short the market. As the saying goes, the market can stay irrational longer than you can stay solvent."

Some people agreed with the commenter, mentioning how the tariffs are affecting the profit margins of small businesses. However, others believed that some of the dips were irrational. For instance, the recent Alphabet dip prompted many Redditors to pick up more shares and capitalize on the "flash sale."

Read Next:

• If You're Age 35, 50, or 60: Here’s How Much You Should Have Saved Vs. Invested By Now
• ‘Scrolling To UBI' — Deloitte's #1 fastest-growing software company allows users to earn money on their phones. You can invest today for just $0.30/share with a $1000 minimum.

Image: Shutterstock