- The Schwab Trading Activity Index™ (STAX) rose slightly to 40.66 in June, following three months of decline.
- Schwab clients were net sellers of equities, especially in the Information Technology and Financial sectors.
- The S&P 500 index (SPX) hit record highs in June, gaining over 5%.
The Schwab Trading Activity Index™ (STAX) saw a modest increase in June, rising to 40.66 from 39.68 in May. This marks the first uptick after three consecutive months of decline, although the index remains well below its 2025 high of 51.94 experienced in February. Schwab's proprietary index reflects retail investor behavior and stock positions among its clients.
In June, Schwab clients continued to sell equities, with the most significant net selling occurring in the Information Technology, Financial, and Communication Services sectors. Notably, information technology was the biggest net-sell sector for the fifth consecutive month, driven largely by the selling of NVIDIA Corp. (NVDA) and Microsoft Corp. (MSFT), despite their stock price gains during this period.
Meanwhile, the S&P 500 index (SPX) set new record highs, climbing over 5% in June. This contrasted with the somewhat cautious behavior reflected in the STAX, which despite its rise, was outpaced by the broader market index for the fourth straight month.
The month also highlighted a continued trend towards purchasing exchange-traded funds (ETFs) rather than individual stocks. Popular stocks bought by Schwab clients included Tesla Inc. (TSLA), Palantir Technologies Inc. (PLTR), Amazon.com Inc. (AMZN), and Alphabet Inc. (GOOGL).
Overall market volatility decreased in June, as evidenced by the CBOE Volatility Index® (VIX) trading well below its historic averages by the end of the month. This was partly due to market optimism surrounding tariff discussions and the U.S. budget.
