Stocks can be driven up into the end of the year by jealous investors looking to get in on the action, according to traders on Wall Street. Among them was Citadel Securities' Scott Rubner, who said in a note that under-invested participants continue to get swayed into buying the market by the fear of missing out. Meanwhile, he said there's market tailwinds tied to themes such as the artificial intelligence and deregulation. "The supply and demand mismatch has turned decisively in favor of the buyside," Rubner wrote in a trading note. "If indices push to new highs, FOMO-driven chase behavior could accelerate.' "Retail investors – this year's primary price setter – continue to hold the hottest hand and remain fully engaged," he added. By comparison, he called institutional investors "under-exposed." Morgan Stanley said investors are missing positive action taking place outside of the AI trade. The bank's core trading team pointed to "mounting strength" in global banking, adding that the Invesco KBW Bank ETF (KBWB) has entered a confirmed breakout. Morgan Stanley also said the market has seen a "real economy revival" this week, illustrated in part by the iShares Transportation Average ETF (IYT) rising to new highs. "2025 is ending where it spent much of the year: underpricing what can go right," the firm's trading team wrote. KBWB YTD mountain KBWB ETF, year to date And in recent days, JPMorgan found mom-and-pop investors have been diving head first into the market. Firm data shows retail traders have seen eight straight days of net buying. To be sure, any gains into year-end would build on an already strong performance for the market. The S & P 500 has added more than 16% in 2025, on track for its third straight winning year and sixth positive year of the last seven.
