September saw a buoyant market, where the S&P 500 surged by 2.02%. Interestingly, trading volume on Charles Schwab Corporation’s platforms took a downward turn despite the market’s vigor.
Dive into the Numbers
The Schwab Trading Activity Index (STAX) declined from 53.15 in August to 47.10 in September, signaling a shift in trader behavior. This index draws data from millions of funded accounts at Charles Schwab, reflecting how traders positioned themselves in the market.
Market Behavior Unpacked
Investors in September were on their toes, reacting to economic data releases with both proactive and reactive moves. According to Joe Mazzola, Head Trading & Derivatives Strategist at Charles Schwab, traders were keen on de-risking and capitalizing on profit opportunities amidst a flurry of market-affecting economic indicators.
In light of a robust Federal Reserve stance, Schwab’s clients displayed a sense of optimism about economic prospects. Notably, the divergence between market performance and the STAX score during September marked a significant anomaly in Schwab’s analytical history.
Market Performance Highlights
The month witnessed record highs for the S&P 500 and the Dow Industrials, culminating in new milestones for these indices. Meanwhile, the Nasdaq Composite Index approached its historical closing highs but fell slightly short.
Stock Trend Analysis
Charles Schwab’s clients favored early entrants in artificial intelligence and a restituted chip stock, whereas they divested from select high-profile tech stocks, a telecom firm, and a couple of Chinese companies.
- Stocks In Favor
- Nvidia Corp. (NASDAQ: NVDA)
- Palantir Technologies, Inc. (NYSE: PLTR)
- Intel Corp. (NYSE: INTC)
- Alphabet, Inc. (NASDAQ: GOOGL, GOOG)
- Microsoft Corp. (NASDAQ: MSFT)
- Stocks Out Of Favor
- Tesla, Inc. (NASDAQ: TSLA)
- Advanced Micro Devices, Inc. (NASDAQ: AMD)
- Alibaba Group Holding Ltd. (NYSE: BABA)
- AT&T, Inc. (NYSE: T)
- Nio, Inc. (NYSE: NIO)
September witnessed a rebound for the beleaguered chip stock Intel coupled with retail interest propelling Palantir due to its S&P 500 inclusion. Notably, Meta Platforms, Inc., a notable performer in October, was absent from Charles Schwab’s top-bought list.
Despite being net sellers of Alibaba and Nio in September, traders witnessed a surge in both stocks following China’s late-September stimulus announcements.
Wrapping up, the S&P 500 ETF Trust concluded its session positively, confirming the market’s resilience.