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Retail investors started reaching beyond the mega-cap tech stocks last month into more volatile companies tied to the artificial intelligence boom, Charles Schwab reported Monday, citing its trading activity index.
“The reign of the Magnificent Seven may not be over, but in September we saw Schwab’s retail clients branch out from those traditional names and into higher-volatility, AI-adjacent stocks, some of which have made big moves recently,” Joe Mazzola, Schwab head trading and derivatives strategist, said. “September brought a number of first-time entrants to our top 10 list, suggesting clients are casting a wider net, seeking additional upside from a market trading at all-time highs."
The Schwab Trading Activity Index, or STAX, a behavior-based index that analyzes retail investor stock positions and trading activity, far outpaced the S&P 500 index in September for the second consecutive month, with Schwab clients getting more aggressive after holding back earlier this year after the April tariff sell-off, the company said.
The midmonth rate cut announced by the Federal Reserve, lighter-than-expected inflation data and resilient retail sales likely contributed to higher investor confidence.
Popular stocks that Schwab clients purchased last month included Nvidia, Amazon, Oracle, Palantir Technologies and Opendoor Technologies. Those that Schwab clients sold on net included Tesla, Apple, Alibaba, Micron Technology and Super Micro Computer, the company said.
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