New York, February 1, 2026, 16:43 EST — Market closed
Charles Schwab shares closed Friday at $103.92, rising 0.4% after fluctuating between $102.88 and $104.86. Investors are gearing up for a week where shifts in interest-rate expectations could drive the action. Markets open Monday. (StockAnalysis)
This matters for Schwab since a large chunk of its revenue comes from the spread it earns on client cash — basically the interest it collects minus what it pays out. When traders change their expectations on interest rates, both that spread and the stock’s valuation can shift accordingly.
Investors are gearing up for Schwab’s January monthly activity report, set for Feb. 13. The firm currently reports $11.90 trillion in client assets. These reports are closely monitored for clues on trading volume, new account openings, and client cash positions. (About Schwab)
Donald Trump stirred the weekend with his announcement that Kevin Warsh, his pick to head the Federal Reserve, might win backing from some Senate Democrats. Trump tapped Warsh to replace Chair Jerome Powell when Powell’s term expires in May 2026, according to Reuters. (Reuters)
Warsh’s approach to policy remains unclear. Heather Long from Navy Federal Credit Union said Warsh “won’t want to lose market trust by making cuts that aren’t warranted.” Meanwhile, Reuters highlighted that rate futures are still betting on only two quarter-point cuts in 2026, moving from today’s 3.50% to 3.75% range. (Reuters)
Late last week, Schwab announced a boost in capital returns. The board approved a 19% hike in the regular quarterly cash dividend, raising it to $0.32 per share. The payout is set for Feb. 27, to shareholders of record as of Feb. 13. Co-chairman Walt Bettinger said the increase shows the board’s confidence in “profitable growth through-the-cycle.” (Charles Schwab Press Room)
Management shifts are underway. On Jan. 29, Schwab announced in a filing that Charles Schwab Bank CEO Paul Woolway plans to retire on July 1. Tyler Woulfe will take over as president and CEO of the bank. The filing also revealed that Dennis Howard, the chief information officer, will head up a new technology, operations, and data division. (Schwab Content)
Rate changes often send shockwaves through brokerage firms like Robinhood Markets and Interactive Brokers. But Schwab’s massive client cash and banking operations give it a distinct sensitivity compared to those focused solely on trading.
There’s a downside risk here as well. If rates drop quickly, Schwab’s interest income could take a hit. Plus, “cash sorting”—where clients move idle cash into higher-yield funds—can erode margins even when markets stay steady. A steep drop in equities would also weigh on asset-based fees.
The next key event is Friday’s U.S. January jobs report, set for 8:30 a.m. ET. This report tends to shift rate expectations quickly. The Bureau of Labor Statistics has it scheduled for Feb. 6. (Bureau of Labor Statistics)
