Schwab clients were net buyers of equities in October, continuing to outpace the S&P 500^® index (SPX)

The Schwab Trading Activity Index™ (STAX) increased to 48.12 in October, up from its score of 46.12 in September. 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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The reading for the five-week period ending October 31, 2025, ranks “moderate low” compared to historic averages.

“We continue to see signs of cautious optimism when it comes to our clients’ trading behavior,” said Joe Mazzola, Head Trading and Derivatives Strategist at Charles Schwab. “Stocks are expensive right now, but the markets keep going up, so retail investors appear to be taking advantage of dip-buying opportunities where they can. Even with limited economic data due to the ongoing government shutdown, clients continued to increase exposure as the market kept soaring, despite concerns about how top-heavy it may be becoming.”

The STAX climbed in just two of the five weeks tracked in October, starting and finishing the period strong but falling in the weeks between. Magnificent Seven earnings, a Federal Reserve rate cut, and excitement over progress on U.S./China trade relations appeared to bring buyers back in the final week of the month. At the sector level, the top three net-buys in October were communication services, financials, and industrials. The three that saw the most net-sells from Schwab clients were information technology, consumer discretionary, and health care.

The October STAX revealed a divergence in sentiment between generations of investors. Based on market exposure, the most bullishly positioned investor group appeared to be Generation X, born between 1965 and 1980, while the least aggressive group belonged to Generation Z, born between 1997 and 2012.

Volatility was a bigger factor in October than in September. The Cboe Volatility Index (VIX) tested 29 at mid-month, up from recent lows of around 15, on a brief scare about possible credit issues involving bank loans. That closely followed a wave of selling that took the S&P 500 index (SPX) down nearly 3% in a single session on October 10—the worst drop for the index since April—following a new round of threats by the U.S. and China on trade. By the end of the month, the credit worries had diminished, as had China trade worries following a meeting between Presidents Trump and Xi.

This all took place during a U.S. government shutdown that prevented release of nearly every official data report during October. Stocks rose anyway, and the Fed delivered a 25-basis point rate cut in late October despite signs of stubborn inflation. The Fed cited worries about the jobs market, but Fed Chairman Jerome Powell delivered hawkish comments in his post-meeting press conference, hurting previous market confidence that another cut would come in December.

Earnings season took center stage starting in mid-October, and results from the largest U.S. banks and the Magnificent Seven looked generally solid, helping send major indexes to new all-time highs. Of the S&P 500 companies reporting through the end of the month, 67% beat revenue expectations and 82% beat EPS estimates, with revenue and EPS growth of 8.44% and 10.34% respectively. Still, concerns about narrowing market breadth rose as the month came to an end.

Popular names bought by Schwab clients during the period included:

• NVIDIA Corp. (NVDA)
• Meta Platforms Inc. (META)
• Microsoft Corp. (MSFT)
• Amazon.com Inc. (AMZN)
• Palantir Technologies Inc. (PLTR)

Names net sold by Schwab clients during the period included:

• Advanced Micro Devices (AMD)
• Apple Inc. (AAPL)
• Tesla Inc. (TSLA)
• Eli Lilly and Co. (LLY)
• Intel Corp. (INTC)

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.

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.

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