Castle Securities: The driving force behind the US stock market's record high remains solid

Castle Securities stated that despite the cooling down of retail speculative trading, the force driving the US stock market to record highs remains stable. Scott Lubner, head of stock and stock derivatives strategy at Castle Securities, stated that the market is shifting from being driven by cash flow to an environment determined by profitability, corporate demand, and macroeconomic background. According to data from Castle Securities, the withdrawal of retail investors caused a 28% decrease in the asset size of leveraged ETFs to $154 billion. The decrease in the cost of stock position financing has eased the pressure on Wall Street trading departments and reduced the demand for leveraged funds. Strong profit performance is beneficial for the US stock market, and the demand for corporate buybacks is expected to accelerate.