Stock market margin debt declined for the second straight month after posting large gains throughout the summer months. It seems as if the big money in the market has been selling some of their shares and reducing some of their exposure to borrowed funds for trading.
Margin Debt Declines 4.2% From 2023 High
Margin debt declined to hit $680.85 billion in September which is 4.2% lower than the $709.83 billion figure that was observed in July. To go further, in August margin debt stood at $689.18 billion, so this represents two consecutive months of declines.
The 4.2% decline in margin debt since the end of July has translated into a 9.7% decline in the S&P 500 over the same time period. Recently, retail sales have improved, GDP has improved, and expectations for rate hikes have been lowered; if markets continue to decline at this point, it could be because market participants are focusing more on the margin debt figures. We will give another update on margin debt in December to close out 2023.
Leave a Comment
You must be logged in to post a comment.
