The Senate approved President Biden's $1.9 trillion coronavirus relief package Saturday, directing a third round of stimulus checks to most Americans.
The U.S. government passed the largest piece of stimulus legislation in our nation's history to allow people to keep paying their bills during the forced economic shutdowns due to the coronavirus. Consumers, in turn, used a lot of that money to speculate in the stock market.
Securities trading was among the most common uses for the government stimulus checks in nearly every income bracket. For many consumers, trading was the second or third most common use for the funds, behind only increasing savings and cash withdrawals, the data showed.
The major inflow of new market participants demonstrates Americans were and are hoping to buy the dip and get in on the comeback.