Charles Schwab: Retail Investors Continued Buying Tech Stocks in June, STAX Index Rises to 59.12
Taylor Wilson
Charles Schwab's STAX index climbed to 59.12 in June, with net buying outpacing net selling by more than 2-to-1 as retail traders piled into tech stocks during pullbacks — yet "high valuations" is quietly rising on their worry list.
How much did STAX move, and what does it tell us?
Schwab's STAX index — a gauge of retail trading activity drawn from millions of client accounts — hit 59.12 in June, up 7.33% from May's 55.08.
After a slight dip in the first week, the index rose every subsequent week. Net buying exceeded net selling by more than 2-to-1 for the month.
This means → even as the broader U.S. equity rally lost steam in June, retail traders leaned in harder, not softer.
What were retail investors buying and selling?
The heaviest buying came mid-month during a market pullback, confirming the buy-the-dip habit remains intact.
Net purchases concentrated in tech: SpaceX (which debuted on June 12), Nvidia, Micron, and Microsoft.
Net selling hit Berkshire Hathaway, UnitedHealth, Snowflake, IREN, and Cisco Systems.
Is retail sentiment actually bullish or cautious?
A separate Schwab sentiment survey showed investor confidence slightly improved month over month.
The top concerns remained unchanged: inflation and rate trajectory, tariff policy, and uncertainty around Iran.
In plain terms = retail investors say they are worried, but their wallets disagree — a clear gap between stated sentiment and actual behavior.
Why does the "high valuations" signal deserve attention?
"High valuations" has climbed in the ranking of risks investors flag as potential threats.
This reflects a growing awareness among some retail traders that tech stocks may have run ahead of fundamentals.
This means → if that concern keeps building, the buy-the-dip reflex could weaken — making this the single most important inflection point to watch next.
Content is for reference only, not financial advice.