Schwab clients were net buyers of equities in August, outpacing the S&P 500® index (SPX) and pushing the STAX to a five-month high

The Schwab Trading Activity Index™ (STAX) increased to 43.69 in August, up from its score of 41.79 in July. 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 four-week period ending August 24, 2025, ranks “moderate low” compared to historic averages.

“Market volatility subsided in August, hitting a year-to-date low, and as a result, Schwab clients demonstrated greater confidence with their buying patterns than we’ve seen in months,” said Joe Mazzola, Head Trading and Derivatives Strategist at Charles Schwab. “As in July, clients remained net-sellers of information technology overall but continued buying big names like Nvidia (NVDA) and Palantir (PLTR). They also gravitated toward sectors like financials and health care and generally showed more willingness to look at opportunities beyond the mega-caps.”

The SPX rally slowed in August, but Schwab clients became more enthusiastic buyers, and the STAX rose by 4.55% during the period compared to just 1.12% for the SPX. The Cboe Volatility Index (VIX) hit a 2025 low of 14.12 late in August, having peaked at above 60 in April.

Economic data during the August STAX period tended toward the weaker side of the ledger, starting with the July nonfarm payrolls report with just 73,000 jobs added and downward revisions of more than 250,000 to the two prior monthly reports. Rate cut odds rose despite the July Producer Price Index (PPI) coming in higher than expected at 0.9% for both headline and core PPI (core excludes food and energy). This report, followed by a slightly hot Personal Consumption Expenditures Price Index (PCE) at the end of August, sparked concerns that tariff-related price increases are starting to filter into prices faced by companies which could ultimately trickle down to consumers.

Other August reports showed U.S. manufacturing still struggling during July and the housing market remaining relatively soft as high mortgage rates continue. However, the government kept its second quarter gross domestic product (GDP) growth estimate relatively solid at 3.3%. At the same time, second quarter earnings growth for S&P 500 companies was close to 12% by the end of August with nearly 100% of firms reporting. Those solid earnings and hopes for a rate cut helped support major indices in August, and Treasury yields stayed in check as well, with the 10-year yield spending much of the month bouncing in its long-term range between roughly 4.2% and 4.4%.

The Fed met in late July and kept rates where they've been since the last cut in late December. Later in August at the Fed's annual Jackson Hole Economic Symposium, Fed Chairman Jerome Powell signaled that he might be ready to back a rate cut in September based on the preponderance of weak job market signals.

Popular names bought by Schwab clients during the period included:

• NVIDIA Corp. (NVDA)
• Palantir Technologies Inc. (PLTR)
• UnitedHealth Group Inc. (UNH)
• Amazon.com Inc. (AMZN)
• Microsoft Corp. (MSFT)

Names net sold by Schwab clients during the period included:

• Apple Inc. (AAPL)
• Meta Platforms Inc. (META)
• Reddit Inc. (RDDT)
• Tesla Inc. (TSLA)
• Ford Motor Co. (F)

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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