Castle Securities: The forces driving the S&P 500 to new highs remain strong

According to Jinshi News, Castle Securities stated that the forces that drove U.S. stocks to record highs this year are still "firmly in place" after retail investor speculative trading has cooled down. Scott Rubner, head of equity and equity derivatives strategy at Castle Securities, indicated that the market is shifting from a fund flow-driven environment to one determined by earnings, corporate demand, and macroeconomic conditions.

The retreat of retail investors has led to a 28% decline in the asset size of leveraged ETFs to $154 billion, and the decrease in financing costs for stock positions indicates that the pressure faced by Wall Street's trading departments has eased. Recent strong earnings performance is favorable for the U.S. stock market, and corporate buyback demand is expected to accelerate.