Schwab Trading Activity Index

Score Declines to Moderate-Low Levels in April Amid Market Volatility

The Schwab Trading Activity Index (STAX) decreased to 48.87 in April, down from its score of 51.65 in March. 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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Schwab Trading Activity Index April 2024 (Graphic: Charles Schwab)

The reading for the four-week period ending April 26, 2024, ranks “moderate low” compared to historic averages as investment exposure decreased.

“The April STAX period was marked by volatility as major indices took a breather from a five-month winning streak and had their worst month since September, despite solid corporate earnings,” said Joe Mazzola, Head Trading & Derivatives Strategist at Charles Schwab. “While Schwab clients were net buyers of equities, the investor enthusiasm that characterized the March results began to wane in April, pushing down the STAX score for the month. Clients were more discerning with their purchases, preferring to gravitate towards companies with strong fundamentals, particularly those with compelling generative AI solutions. Those companies continue to rank near the top of our client buy lists.”

U.S. equity markets fell during the April STAX period and indices experienced several single-day losses of greater than 2% following disappointing economic data releases. The CBOE Volatility Index (VIX) spiked from 13.01 to 15.03, reflecting additional perceived downside risks to equities. On April 4, initial jobless claims came in at 221,000, slightly higher than the 214,000 expected, and the U.S. Bureau of Labor and Statistics’ Employment Situation Summary released on April 5 showed that nonfarm payrolls increased by 303,000 in March – significantly better than the 200,000 expected. The unemployment rate was little changed at 3.8%. The Consumer Price Index (CPI) rose by 0.4% for the month of March, bringing the 12-month increase to 3.5%, before seasonal adjustment. The Producer Price index (PPI) came in at 0.2%, corresponding to a 12-month rise of 2.1% versus economists’ projections of 2.3%. U.S. Retail Sales for March increased 0.7% from the previous month, versus an expected increase of just 0.3%.