Charles Schwab (SCHW, Financial) saw its stock price increase by over 3%, reaching $81.01, marking the highest intraday level since January 2023. This surge follows the release of its monthly activity report, which showed a $10 billion increase in trading liquidity for October compared to the previous month.
This growth in liquidity is expected to help Schwab repay short-term borrowings accumulated last year when customers withdrew substantial funds from low-interest bank accounts. The report highlighted an increase in uninvested cash held by clients in interest-bearing accounts, indicating Schwab is effectively addressing its cash sorting issues.
Cash sorting refers to the trend of investors moving their money from low-yield accounts to higher-yielding options, which is beneficial for financial companies.
