Investors' borrowing to buy stocks has cooled sharply. According to FINRA data, annual growth in margin debt fell to 31.4% in September from 53.7% in May, and BofA technical strategist Paul Ciana warned that slowing borrowing from extreme levels has preceded past market peaks. May's 2026 growth rate was the fourth highest since 1998, after 2000, 2007 and 2021, all of which were followed by stock market declines. Margin debt stood at $1.48 trillion in September, 1.5% below June's record of $1.5 trillion. BofA also flagged widening high-yield credit spreads and a rotation into defensive sectors such as healthcare and consumer staples, which its equity derivatives team said has pushed them to “bubble-risk levels.”
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Related tickers and likely impact
QQQ
▼ Likely negativeInvesco QQQ Trust
Relevance: medium
| Market | US stocks |
|---|---|
| Sector | ETF |
| Close on 10/26/2026 | 712.11 |
| Change that session | +1.09% |
SPY
▼ Likely negativeSPDR S&P 500 ETF
Relevance: medium
| Market | US stocks |
|---|---|
| Sector | ETF |
| Close on 10/26/2026 | 765.22 |
| Change that session | +0.69% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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