Schwab Trading Activity Index™: December Sees Modest Net Selling Amid Year-End Repositioning

On January 5, 2026, Charles Schwab Corp. released its monthly update on the Schwab Trading Activity Index™ (STAX), revealing a slight decrease in the index score to 48.48 for December, down from 48.75 in November. This marks a break in a three-month streak where the STAX consistently outperformed the S&P 500 index (SPX), which experienced a modest rise of 1.18% during the same period.

Joe Mazzola, Schwab's Head Trading and Derivatives Strategist, provided insights into the index's performance, noting that December typically sees retail investors repositioning their portfolios in anticipation of the year's close. “While that did tip the scales into net-selling territory, the degree to which clients net sold was ultimately modest,” he stated. Mazzola emphasized that throughout 2025, Schwab clients demonstrated a tendency to trim positions into market strength while also capitalizing on dips, particularly as the markets approached 52-week highs toward the end of December.

The December STAX period concluded on December 26, and while clients were net sellers, the overall movement within the STAX Index was minimal. Notably, much of this selling occurred during the holiday-shortened final week, suggesting that the activity was more reflective of end-of-year repositioning than a significant shift in investor sentiment.

In December, sector activity revealed a notable shift. Information Technology, which had previously been the largest net-buy sector in November, saw the highest net-selling activity in December. Following this, Consumer Discretionary, Health Care, Industrials, and Energy sectors also experienced significant net selling.

December was characterized by major U.S. indexes reaching all-time highs on December 26, albeit with only slight increases compared to earlier in the month and previous highs set in October. This upward momentum coincided with a widely anticipated rate cut from the Federal Reserve—the third such cut since September—and positive economic indicators, including a surprisingly strong GDP growth figure for the third quarter and a softer-than-expected Consumer Price Index for November.

The report highlighted that the most aggressively positioned investors in December belonged to Generation X (born between 1965 and 1980), while Generation Z (born between 1997 and 2012) exhibited the least aggressive trading behavior.

During the December period, Schwab clients showed interest in a variety of stocks, with popular purchases including:

The latest STAX report from Charles Schwab provides valuable insights into retail investor behavior as 2025 drew to a close. Despite a slight downturn in trading activity, the overall sentiment appears cautiously optimistic, driven by strategic repositioning rather than panic selling. Investors and analysts alike will be keen to monitor how these trends evolve in 2026, particularly in light of economic indicators and market performance.

For those interested in tracking the STAX, it can be charted using the symbol $STAX on Schwab's thinkorswim® platforms.