New York, May 25, 2026, 16:02 EDT
- Schwab (SCHW) last changed hands at $90.15 on Friday, with U.S. markets shut for Memorial Day.
- The new issue is if AI tools let clients shift idle brokerage cash into higher-yield products more easily.
- This week traders are watching Tuesday’s reopen, with inflation data and rate-sensitive financials back in play.
Charles Schwab shares are moving into this short week as investors take a closer look at risks to one of the company’s top earning streams—idle client cash. U.S. markets were closed Monday for Memorial Day, and the NYSE has May 25 set as an exchange holiday in 2026.
The stock ended Friday at $90.15, dipping 0.29% for the session and trading nearly 0.8% lower than its May 15 close. Monday’s gains faded in a midweek slide. Elsewhere, the Dow, S&P 500 and Nasdaq each ended last week on the upside, with the S&P 500 logging its eighth week in a row of gains.
That split is in focus now as Schwab trades not only on market strength but on questions around its cash model holding up.
Sweep cash is in focus. This is idle brokerage cash that moves to a sort of bank account. Barron’s wrote over the weekend that AI-powered tools might let clients move that sweep cash into higher-yield products. That could put pressure on firms like Schwab, LPL Financial and Raymond James.
Schwab posted solid operating stats for April. Client assets totaled $12.61 trillion, up 27% over last year. Core net new assets came in at $7.2 billion, with tax-related withdrawals weighing on the figure. Daily average trades hit a record 10.3 million.
The company lifted its 2026 revenue forecast at investor day this month, telling analysts it now sees full-year revenue increasing 14% to 15%. The previous target was 9.5% to 10.5%. “We should be a much bigger business,” CEO Rick Wurster said, according to Barron’s. Barron’s
Wurster said in the first-quarter release that “strong business momentum continued into 2026” as clients opened 1.3 million new brokerage accounts and brought in $140 billion in core net new assets. CFO Mike Verdeschi pointed to Schwab’s diversified model, saying it delivered record results despite an “uncertain macroeconomic environment.” Charles Schwab
Schwab isn’t looking to get into meme coins or prediction markets, Wurster said in comments picked up Monday. He said Schwab is in the “outcomes business” and does not want to roll out products just to boost transaction counts. TipRanks wrote Schwab is focused on lending, advisory, workplace options and using AI tools for wealth management.
AI could also speed up outflows. If clients use software to move their cash more easily, some may react to low sweep rates by shifting money to higher-yield money-market funds more quickly than Schwab predicts. That would pressure Schwab’s net interest income—the gap between what the firm earns on its assets and what it pays out on client cash and funding.
Analyst calls go both ways here. Goldman Sachs analyst Alex Blostein wrote that higher-yielding defaults offered by competitors aren’t driving asset flows. Truist’s David Smith said he’s not sure the added income is “worth it to most customers,” according to Barron’s. Citizens analyst Devin Ryan added that the “AI/cash overhang” might stick around for a while, but Schwab could still “grow through the debate.” Barron’s
Schwab has few events on the calendar this week, but the broader market will see a heavy flow of data. Wall Street reopens Tuesday, and investors will be watching consumer confidence, jobless claims, new home sales and revised first-quarter GDP. The week also brings the personal consumption expenditures index, the Federal Reserve’s main inflation gauge.
Schwab faces a simple next step. Investors have to weigh client growth, trading levels and higher revenue outlook against the risk that better cash tools push the broker to boost deposit costs or lose some spread. Tuesday’s open will show the initial reaction.
