SpaceX, Nvidia Lead Schwab Buys As Software Rally Spurs Profit-Taking – Trading Gauge Posts First Dip Since April

• Schwab’s STAX fell to 57.50 in August, its first decline since April, despite the S&P 500’s 2.96% gain.
• Schwab attributed software selling to profit-taking and rebalancing after sharp rebounds.
• ETFs occupied four of the top 10 net-buy spots, while call buying was strong.

SpaceX (SPCX) and Nvidia (NVDA) drew buying from Charles Schwab clients in August as investors took profits in rebounding software stocks, according to the brokerage’s report released Tuesday, which showed its retail trading gauge falling for the first time since April despite broader market gains.

The Schwab Trading Activity Index, or STAX, declined to 57.50 from July’s 59.80. The S&P 500 gained 2.96% during the same period, its strongest gain since May.

Schwab’s August Stock Buys And Sells 

Micron Technology (MU), Intel (INTC) and Alphabet (GOOGL) joined SpaceX and Nvidia among popular purchases. Palantir Technologies (PLTR), Microsoft (MSFT), ServiceNow (NOW), Salesforce (CRM) and Oracle (ORCL) featured among net-sold names.

“August trading activity suggests Schwab’s retail clients were becoming more selective as markets recovered,” said Joe Mazzola, Schwab’s head trading and derivatives strategist. “Rather than pulling back from the market, many appeared to rebalance, taking profits in high-beta software stocks after sharp rebounds while remaining engaged with growth and innovation leaders such as SpaceX and Nvidia.”

At the sector level, technology, communication services and financials recorded the largest net selling. Industrials, utilities and real estate were the only S&P 500 sectors to attract net buying.

Schwab Clients Favor ETFs And Options 

ETFs accounted for two of the five largest net buys and four of the top 10. Schwab said that clients preferred diversified exposure over adding concentrated stock positions.

Call buying remained strong, particularly in companies related to technology-heavy ETFs. The brokerage said options activity indicated demand for defined-risk market exposure without fully rebuilding equity holdings. Gen X led net buying among age groups, while self-directed traders were more inclined to buy than self-identified investors. According to Schwab, August’s STAX decline ended three consecutive monthly increases. The reading was above April’s 50.10 and August 2025’s 43.69.

Slower Growth, Higher Yields Spur Caution 

The report highlighted a 23,000 decline in July payrolls and second-quarter GDP growth of 1.5% at a seasonally adjusted annual rate. Inflation moderated, but Treasury yields climbed through August as oil prices rebounded amid renewed Middle East tensions.

Hawkish remarks from Federal Reserve Chair Kevin Warsh lifted September rate-hike expectations on the final afternoon covered by Schwab’s August report. However, Schwab said the comments came too late to affect the month’s STAX score. 

SpaceX, Chip Stocks Post Strong Growth 

SpaceX’s first public quarterly results showed revenue rising 92% to $7.8 billion and its loss narrowing to $541 million, but higher-than-expected AI spending of $15.8 billion weighed on shares.  Musk targeted a $100 billion annualized revenue run-rate by December and $1 trillion in revenue by 2030. SpaceX was also among Schwab’s leading June purchases, with CEO Rick Wurster describing IPO demand as “off the charts.”

Meanwhile, Nvidia’s quarterly revenue jumped 106% to $96 billion, including $89 billion from data centers, with $108 billion projected next quarter. The company nevertheless warned of “extreme” memory costs and margin pressure. Micron, meanwhile, reported $41.46 billion in quarterly revenue and forecast $50 billion next quarter, expecting supply tightness beyond 2027 with “no line of sight” to supply catching demand.

Nvidia also disclosed stakes worth $21 billion in SpaceX and $30 billion in Intel as of June 30.

On the selling side, Palantir reported 93% revenue growth, 149% U.S. commercial growth and an $8.15 billion full-year outlook. Microsoft moved from Schwab’s June buying list to August’s net-selling list.

How Do Retail Traders Feel About Schwab Picks?

On Stocktwits, retail sentiment was ‘bearish’ for SPCX and NVDA amid ‘low’ message volume, while MU and PLTR shared the same sentiment with ‘normal’ volume. INTC recorded ‘bullish’ sentiment amid ‘high’ message volume.

Over the past year, MU surged 662% and INTC climbed 327%, while NVDA gained 34% and PLTR rose 9%. SPCX fell 5%. 

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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