Charles Schwab Stock Suffers Worst Month Since 1987 Amid Cash Shifts and Downgrade

Charles Schwab Corp. is experiencing its worst month in over 35 years, with shares down 34% in March, wiping out $47 billion in market value. The brokerage giant is facing headwinds from its banking arm, which invested in long-dated bonds during a period of low interest rates and is now stuck with losses on those investments as the Federal Reserve has increased interest rates. Additionally, customers seeking better returns are moving their cash deposits into higher yielding assets like money-market funds, putting pressure on the company's profit outlook. Despite the drop, some analysts see this as a historic buying opportunity for the financials sector as a whole.