Leveraged ETF Assets Drop 28% as US Market Shifts to Earnings

US stocks hit record highs while leveraged ETF AUM falls 28% to $154B. Castle Securities notes a shift from retail speculation to earnings and buyback-driven demand.

Woofun AI reports that Castle Securities maintains the strength behind US stock record highs remains intact despite a cooling in retail speculative trading. Scott Rubin, Head of Stock and Equity Derivatives Strategy at Castle Securities, stated the market is shifting from fund-flow dynamics to one dictated by earnings, corporate demand, and macroeconomic factors.

Leveraged ETF assets under management declined 28% to $154 billion as retail investors retreated. Reduced financing costs indicate lower pressure on Wall Street trading desks and decreased leverage demand. Strong earnings surprises continue to support valuations, with corporate buyback activity expected to accelerate following the end of the earnings quiet period.