What's Going On With Charles Schwab (SCHW) Shares
Portfolio Pulse from Henry Khederian
Shares of Charles Schwab Corporation (SCHW) are trading lower amid concerns about future rate hikes following the FOMC statement and lower-than-expected initial jobless claims data. The Federal Reserve maintained the federal funds rate within the 5.25% to 5.5% range at its September meeting. Higher interest rates can boost Schwab's 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.
September 21, 2023 | 5:02 pm
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Charles Schwab's stock is trading lower due to concerns about future rate hikes. Higher interest rates could increase Schwab's income but may also lead to slower economic growth or higher borrowing costs, potentially reducing investment activity and income.
Charles Schwab's stock is trading lower due to concerns about future rate hikes. These concerns stem from the recent FOMC statement and lower-than-expected initial jobless claims data. Higher interest rates could increase Schwab's income from customer deposits and investments. However, they could also lead to slower economic growth or higher borrowing costs for Schwab's clients, which could reduce investment activity and income.
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