In a recent interview on CNBC’s “Closing Bell: Overtime,” Thomas Peterffy, the founder and chairman of Interactive Brokers, issued a warning about the current state of the market. Peterffy highlighted a concerning trend of rising margin loans, which have increased by 30% to $51.2 billion compared to the year-ago quarter, reaching an all-time high.
“Margin loans keep rising, and that’s never a bullish sign,” Peterffy stated. He emphasized that historically, a surge in margin loans has often preceded a market slowdown, citing the example of the market collapse two years ago when margin loans hit another all-time high just before the sell-off.
Despite these warning signs, Peterffy expressed optimism about the market’s long-term prospects, predicting growth as inflation and interest rates remain high.
In other news, after-hours trading saw significant movement in several stocks. United Airlines saw a nearly 6% increase after surpassing analyst expectations for its first-quarter results, while Autodesk slid 2.4% due to a delay in its annual 10-K filing. J.B. Hunt Transport Services also experienced a decline of more than 5% following weaker-than-expected earnings and revenue last quarter.
Looking ahead, stock futures opened higher on Tuesday night, with futures tied to the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite all trading close to 0.2% higher shortly after 6 p.m. ET.
These developments indicate a mix of caution and optimism in the market, as investors navigate the potential risks and opportunities ahead. Stay tuned for further updates on the evolving market landscape.
