Charles Schwab Corporation Common Stock (NYSE:SCHW) shares are trading lower by 1.1% to $56.02 during Thursday’s session. Shares of several banking and financial stocks are trading lower amid overall market weakness with concerns about future rate hikes following yesterday’s FOMC statement and lower-than-expected initial jobless claims data.
Charles Schwab generates revenue from various sources, including interest income from customer deposits and investments. Higher interest rates can boost this interest income, but concerns about rate hikes may lead to expectations of slower economic growth or increased borrowing costs for clients, which could dampen investment activity and income.
What’s Going On?
The Federal Reserve maintained the federal funds rate within the 5.25% to 5.5% range at its September meeting in a unanimous move.
The September dot plot reveals the median preference for the fed funds rate at the close of 2023 remains unwavering at 5.6%. This figure mirrors projections made back in June, hinting at the possibility of one more rate hike during either of the last two meetings this year…Read More
According to data from Benzinga Pro, SCHW has a 52-week high of $86.63 and a 52-week low of $45.00.
