Citadel Securities believes the most noteworthy change in the US stock market is the increasing availability of funds willing to continue buying at higher prices. From August 10th to 2026, passive ETFs saw a cumulative net inflow of approximately $1.6 trillion, equivalent to an average of about $7.5 billion per day, 55% faster than the previous record. July alone saw a net inflow of approximately $346 billion, a record high. Simultaneously, the corporate buyback window has reopened, with announced authorizations exceeding $1 trillion, and approximately 70% of large buybacks coming from outside the technology sector. Furthermore, retail funds have returned to being net buyers, and the previous systemic deleveraging has largely been completed.
With selling pressure easing and potential buying from passive funds, buybacks, and systemic strategies simultaneously recovering, the market's funding asymmetry is beginning to tilt towards buyers. If August turns into a buying frenzy, some purchasing power may be exhausted prematurely, and the funding structure in September may not be equally favorable.
