Schwab clients were sellers of equities in May; Net selling was highest in the Information Technology, Communication Services, and Financial sectors

The Schwab Trading Activity Index™ (STAX) decreased to 39.68 in May, down from its score of 41.18 in April. 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 May 30, 2025, ranks “low” compared to historic averages.

“Particularly toward the end of the month, we saw that a lot of the dip-buying that retail clients at Schwab had engaged in during April volatility began to give way to paring some of their higher-beta positions, leading to a negative STAX score that diverged from overall market gains,” said Joe Mazzola, Head Trading and Derivatives Strategist at Charles Schwab. “Nvidia was by far retail clients’ top sell in May. Having bought into earnings the week of May 23, many then sold out after earnings. It’s rare that a single name has this degree of influence on the overall STAX score, but in this case, it had a profound effect.”

Wall Street enjoyed its best May since 1990 as the S&P 500 index® (SPX) climbed more than 6%, but Schwab clients used the rally as a selling opportunity, especially for long-time favorite Nvidia (NVDA). The STAX score fell for the third straight month to its lowest level since April 2023 as Schwab clients were net sellers on a dollar basis of six S&P 500 sectors, shedding information technology and communication services stocks, though they increased exposure to the Health Care sector to a dramatic degree.

Though the STAX fell sharply in April, the latter part of that month and early May saw Schwab clients jump back in as stocks advanced from tariff-related early-April lows. That trend lost steam as May continued. Tech has now seen strong selling by clients since December, except for a short period of optimism in late January and early February. Meanwhile, the trend in April toward buying of exchange-traded funds (ETFs) as opposed to individual stocks also remained popular, according to the May STAX data.

The S&P 500 kicked off May on a hot streak, rising 7% by May 19, when it made its monthly high close of 5,963, up roughly 1,000 points from the April low. Volatility fell throughout the month, easing as trade-related concerns tempered. In general, economic data improved throughout May despite a couple of shaky sentiment numbers early in the month that kept recession fears from dissipating completely. The April Nonfarm Payrolls report showed 177,000 jobs created, above expectations, as unemployment remained low at 4.2%. Participation in the job market also ticked higher, often a sign of positive economic momentum.

The April Consumer Price Index (CPI), Producer Price Index (PPI), and Personal Consumption Expenditures (PCE) index generally featured slowing price growth from March, though analysts and Fed policy makers remained wary of possible tariff-related inflation popping up later this year. The Fed kept rates unchanged.

Earnings season featured much better-than-expected first quarter results across most sectors, though that may have reflected some pull-forward ahead of looming tariffs. Treasury note yields climbed through much of the month, with the Treasury market hurt in part by concerns about growing levels of debt. Yields topped 4.6% for the benchmark 10-year note on May 22, well above the low near 4.12% on May 1.

Popular names bought by Schwab clients during the period included:

  • Palantir Technologies Inc. (PLTR)
  • UnitedHealth Group Inc. (UNH)
  • Amazon.com Inc. (AMZN)
  • Tesla Inc. (TSLA)
  • Apple Inc. (AAPL)

Names net sold by Schwab clients during the period included:

  • NVIDIA Corp. (NVDA)
  • Microsoft Corp. (MSFT)
  • Meta Platforms Inc. (META)
  • Broadcom Inc. (AVGO)
  • Walt Disney Co. (DIS)

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.

0625-3Z2W

At the Company Margaret Farrell Director, Corporate Communications (203) 434-2240 margaret.farrell@schwab.com

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