Schwab Hit by Worst Month Since 1987 Amid Cash Sorting Woes
- Stock tumbled 33% in March, wiping out $47 billion in value
- So-called cash sorting has weighed on Schwab’s earnings power
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Charles Schwab Corp.’s worst month in more than 35 years has sparked a debate among analysts as to whether the brokerage giant has been unfairly punished by investors amid growing fears about the US banking sector.
Shares of the firm plunged 33% in March, their biggest drop since October 1987, the month when the biggest single-day stock market crash, dubbed Black Monday, occurred. The rout wiped out $47 billion in market value from Schwab, roughly equivalent to the size of Truist Financial Corp.