What Happened?
Shares of financial services giant Charles Schwab (NYSE: SCHW) fell 5.8% in the afternoon session after a significantly weaker-than-expected U.S. jobs report sparked fears of an economic slowdown, dragging down the broader market and economically sensitive sectors like banking. The U.S. economy added only 22,000 jobs in August, falling far short of the estimated 75,000. This report from the labor market prompted a sell-off as investors weighed the possibility of a recession. The banking sector was particularly hard-hit, falling over 2% as concerns grew about the economy's health. While the soft labor market data could encourage the Federal Reserve to cut interest rates, the immediate market reaction was negative, with the potential for an economic downturn overshadowing optimism about looser monetary policy.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Charles Schwab? Access our full analysis report here, it’s free.
What Is The Market Telling Us
Charles Schwab’s shares are not very volatile and have only had 6 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
Charles Schwab is up 25% since the beginning of the year, and at $92.25 per share, it is trading close to its 52-week high of $98.69 from August 2025. Investors who bought $1,000 worth of Charles Schwab’s shares 5 years ago would now be looking at an investment worth $2,663.
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