Castle Securities said that after retail investors' speculative transactions cooled down, the factors driving US stocks to record highs this year are still stable. “The market is returning from an environment dominated by capital flows to an environment dominated by profit, corporate demand, and macro context,” Scott Rubner, head of stock and stock derivatives strategy at the market maker, wrote in a report to clients. According to Castle Securities data, retail investors last week's stock sell-off in a single week was the biggest since 2022. Rubner said retail sell-offs were mainly focused on technology stocks. According to Rubner, the retreat of retail investors reduced the asset size of leveraged exchange-traded funds by 28% to US$154 billion. At the same time, stock financing costs have declined, indicating that the pressure on the Wall Street trading sector has decreased and the market's demand for leveraged capital has declined.

Castle Securities said that after retail investors' speculative transactions cooled down, the factors driving US stocks to record highs this year are still stable. “The market is returning from an environment dominated by capital flows to an environment dominated by profit, corporate demand, and macro context,” Scott Rubner, head of stock and stock derivatives strategy at the market maker, wrote in a report to clients. According to Castle Securities data, retail investors last week's stock sell-off in a single week was the biggest since 2022. Rubner said retail sell-offs were mainly focused on technology stocks. According to Rubner, the retreat of retail investors reduced the asset size of leveraged exchange-traded funds by 28% to US$154 billion. At the same time, stock financing costs have declined, indicating that the pressure on the Wall Street trading sector has decreased and the market's demand for leveraged capital has declined.