Schwab trading index: Were AI and meme stocks in or out of favor in May?

Schwab trading index: Were AI and meme stocks in or out of favor in May?
The monthly STAX index reveals investment sentiment among firm's clients.
JUN 11, 2024

Schwab clients were net buyers of equities in May according to the firm’s newly released analysis of a sample of millions of funded accounts.

The firm’s trading activity index known as STAX reveals a slight increase month-over-month to a score of 49.05 (from 48.87 in April), reflecting more bullish sentiment among investors, although only a ‘moderate-low’ ranking compared to historic averages.

But what did the behavior-based analysis reveal about investors’ stock positions in a period where U.S. equity markets rebounded from the volatile price swings that characterized the April period?

“As they were in April, Schwab clients were net buyers of equities during the May STAX period as they increased exposure to technology-related names, especially those related to AI Intelligence chip makers and the e-commerce and media companies that rely on them,” said Joe Mazzola, head Trading & Derivatives Strategist at Charles Schwab. “Despite a significant amount of buzz, we didn’t see any of the so-called ‘meme stocks’ rising to the top of the most bought or sold names in May, although we did note that interest in those names was significantly greater among Schwab’s younger clients than it was across the general client population.”

May gave investors a lot to think about as the S&P 500, Dow Jones Industrial Average, and Nasdaq all reached new highs, the Cboe Volatility Index tumbled to near historic lows, inflation and Treasury yields provided headwinds, and economic data was mixed.

The equities in the sights of Schwab clients in May included:

  • NVIDIA Corp. (NVDA)
  • Advanced Micro Devices Inc. (AMD)
  • Tesla Inc. (TSLA)
  • Amazon.com Inc. (AMZN)
  • Microsoft Corp. (MSFT)

Meanwhile, those sold included:

  • Apple Inc. (AAPL)
  • Alibaba Group Holding Ltd. (BABA)
  • Bank of America Corp. (BAC)
  • Snap Inc. (SNAP)
  • Exxon Mobil Corp. (XOM)

Latest News

SEC bars ex-broker who sold clients phony private equity fund
SEC bars ex-broker who sold clients phony private equity fund

Rajesh Markan earlier this year pleaded guilty to one count of criminal fraud related to his sale of fake investments to 10 clients totaling $2.9 million.

The key to attracting and retaining the next generation of advisors? Client-focused training
The key to attracting and retaining the next generation of advisors? Client-focused training

From building trust to steering through emotions and responding to client challenges, new advisors need human skills to shape the future of the advice industry.

Chuck Roberts, ex-star at Stifel, barred from the securities industry
Chuck Roberts, ex-star at Stifel, barred from the securities industry

"The outcome is correct, but it's disappointing that FINRA had ample opportunity to investigate the merits of clients' allegations in these claims, including the testimony in the three investor arbitrations with hearings," Jeff Erez, a plaintiff's attorney representing a large portion of the Stifel clients, said.

SEC to weigh ‘innovation exception’ tied to crypto, Atkins says
SEC to weigh ‘innovation exception’ tied to crypto, Atkins says

Chair also praised the passage of stablecoin legislation this week.

Brooklyn-based Maridea snaps up former LPL affiliate to expand in the Midwest
Brooklyn-based Maridea snaps up former LPL affiliate to expand in the Midwest

Maridea Wealth Management's deal in Chicago, Illinois is its first after securing a strategic investment in April.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.