Schwab Trading Activity Index™: Score Continues Month-over-Month Increase in February
March 04 2024 - 12:30PM
Business Wire
Schwab clients were net buyers in February,
with the most pronounced buying within the Information Technology,
Utilities and Health Care sectors
The Schwab Trading Activity Index™ (STAX) increased to 47.65 in
February, up from its score of 44.73 in January. The only index of
its kind, the STAX is a proprietary, behavior-based index that
analyzes retail investor stock positions and trading activity from
Schwab’s millions of client accounts to illuminate what investors
were actually doing and how they were positioned in the markets
each month.
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Schwab Trading Activity Index February
2024 (Graphic: Charles Schwab)
The reading for the four-week period ending February 23, 2024
ranks “moderate low” compared to historic averages.
“The STAX score has been on the rise since November of last
year, making this the fourth consecutive month Schwab clients have
increased exposure to the markets,” said Joe Mazzola, Director of
Trading and Education at Charles Schwab. “Just as they did last
month, more clients bought equities than sold in February,
contributing to the record-setting ascent in the equity markets
during the period even as they continued to demonstrate cautious
optimism and discernment in their purchases and allocations.”
U.S. equity markets soared to new all-time highs during the
February STAX period as investors shrugged off several key
indicators that came in hotter than expected. On January 31, U.S.
Federal Reserve Chairman Jerome Powell commented that the Fed
remained concerned about stubbornly high inflation. The Fed left
interest rates unchanged as Powell signaled the Fed would remain
noncommittal to the timing of potential rate cuts or easing of
monetary policy. The U.S. Bureau of Labor and Statistics’
Employment Situation Summary released on February 2 showed that
nonfarm payrolls increased by 353,000 in January, a much higher
figure than the 185,000 expected. The unemployment rate remained
unchanged at 3.7%.
In February, the Consumer Price Index (CPI) rose by 0.3% for the
month of January to 3.1% year-over-year, a greater increase than
anticipated. The Producer Price index (PPI) came in at 0.3%, hot
compared to expectations of 0.1%. On February 15, the U.S. Census
Bureau reported that U.S. Retail Sales for January increased 0.6%
year-on-year, following a downwardly revised 5.3% increase in
December. When it came to corporate earnings, on the whole,
companies performed better than analysts had predicted.
Bullish investors appeared to put more stock into earnings
growth than macro headwinds, driving both the Nasdaq and S&P
500 to new all-time highs late in the February STAX period; On
February 23, the Nasdaq Composite reached 16,134.22 while the
S&P 500 (SPX) rose to 5,111.06. The CBOE Volatility Index (VIX)
rose 3.3% from 13.31 to 13.75, reflecting a modest increase in risk
premium. The 10-year Treasury yield persisted above 4% throughout
the period, closing at 4.26%. The U.S. Dollar Index strengthened,
ending at 103.94. April Crude Oil Futures moved fractionally lower,
settling at $76.49 per barrel.
Popular names bought by Schwab clients during the period
included:
- NVIDIA Corp. (NVDA)
- Alphabet Inc. (GOOGL/GOOG)
- Advanced Micro Devices (AMD)
- Super Micro Computer Inc. (SMCI)
- Arm Holdings PLC (ARM)
Names net sold by Schwab clients during the period included:
- Walt Disney Co. (DIS)
- Palantir Technologies Inc. (PLTR)
- Marathon Digital Holdings Inc. (MARA)
- Ford Motor Co. (F)
- General Motors Co. (GM)
About the STAX
The STAX value is calculated based on a complex proprietary
formula. Each month, Schwab pulls a sample from its client base of
millions of funded accounts, which includes accounts that completed
a trade in the past month. The holdings and positions of this
statistically significant sample are evaluated to calculate
individual scores, and the median of those scores represents the
monthly STAX.
For more information on the Schwab Trading Activity Index,
please visit www.schwab.com/investment-research/stax. Additionally,
Schwab clients can chart the STAX using the symbol $STAX in either
the thinkorswim® or thinkorswim Mobile platforms.
Investing involves risk, including loss of principal. Past
performance is no guarantee of future results.
Content intended for educational/informational purposes only.
Not investment advice, or a recommendation of any security,
strategy, or account type.
Historical data should not be used alone when making investment
decisions. Please consult other sources of information and consider
your individual financial position and goals before making an
independent investment decision.
The STAX is not a tradable index. The STAX should not be used as
an indicator or predictor of future client trading volume or
financial performance for Schwab. STAX data includes that from
accounts of TD Ameritrade clients which have not yet transferred to
Charles Schwab & Co., Inc., as part of our planned
integration.
TD Ameritrade, Inc., member FINRA/SIPC, a subsidiary of The
Charles Schwab Corporation. TD Ameritrade is a trademark jointly
owned by TD Ameritrade IP Company, Inc. and The Toronto-Dominion
Bank.
About Charles Schwab
At Charles Schwab, we believe in the power of investing to help
individuals create a better tomorrow. We have a history of
challenging the status quo in our industry, innovating in ways that
benefit investors and the advisors and employers who serve them,
and championing our clients’ goals with passion and integrity.
More information is available at aboutschwab.com. Follow us on
X, Facebook, YouTube, and LinkedIn.
0324-NJ1N
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version on businesswire.com: https://www.businesswire.com/news/home/20240304841142/en/
At the Company Margaret Farrell
Director, Corporate Communications (203) 434-2240
margaret.farrell@schwab.com
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