Charles Schwab trading index rises as retail investors buy October tech dip

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Schwab index rises on tech dip buying

Highlights

Charles Schwab's Trading Activity Index (STAX) rises to 61.94 in October from 58.92 in September, reflecting increased retail trading activity.
Retail investors buy the October tech dip, with heavy purchases in semiconductor and AI-adjacent companies like Intel, SpaceX, Nvidia, Micron Technology, and Alphabet after earnings-driven selloffs.
Net buying in October concentrates in communication services, information technology, and industrials sectors, while November volatility tests the resilience of growth-focused retail strategies.

October trading activity points to renewed stock picking

As reported by Axios, citing Charles Schwab in a release published Monday, its Schwab Trading Activity Index, or STAX, rises to 61.94 in October from 58.92 in September, based on stock positions and trading activity across millions of client accounts.

Joe Mazzola, head trading strategist at Schwab, says retail investors appear to have been waiting for a pullback in October and moved in once prices weakened. He says the pattern is especially visible in semiconductor and AI-adjacent companies, where clients use selloffs tied to earnings reactions as buying opportunities.

October coincides with peak earnings season, and some technology stocks that post disappointing results or outlooks still attract buyers after sharp declines. Among the most popular stocks bought by Schwab clients in October are Intel, SpaceX, Nvidia, Micron Technology and Alphabet.

November volatility now tests retail optimism

The October data suggests individual investors are leaning into growth-oriented trades, but that positioning is now facing a bigger challenge in November after a weak start to the month. The recent volatility puts pressure on the strategy of buying declines, particularly in technology-related shares that had already drawn heavy retail interest.

Schwab says net buying increases overall in October, but the gains are concentrated rather than broad-based. Only three of the S&P 500's 11 sectors, communication services, information technology and industrials, see net benefits as investors target growth stocks.

Our earlier analysis of Micron Technology’s post-rally setup noted that the stock was losing momentum after its June peak, with a breakdown on the weekly chart pointing to a higher risk of further downside. We highlighted weakening RSI and MACD signals and outlined key support and resistance zones that could determine whether Micron stabilizes or extends its pullback.

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