New York, Feb 18, 2026, 15:41 EST — Regular session
- Charles Schwab stock climbed roughly 2.5% in the afternoon session, outpacing gains in the broader market.
- The Fed’s latest minutes revealed a divided committee—some officials willing to consider more hikes if inflation keeps running hot.
- U.S. PCE inflation numbers drop Feb. 20; Schwab’s next monthly activity update lands March 13, both on investors’ radar.
The Charles Schwab Corporation (SCHW) shares climbed roughly 2.5% to $95.40 Wednesday afternoon, pulling ahead of both the S&P 500 tracker and the broader financial sector. Interactive Brokers put up a 2.3% gain. Robinhood, on the other hand, dipped 0.5%.
Wall Street found its footing after the latest AI-driven volatility, with heavyweight tech stocks turning things around and brightening the overall mood. “Weakness in tech was bound to bring in the marginal buyer,” said Ross Mayfield, investment strategy analyst at Baird. CME’s FedWatch Tool, meanwhile, showed traders factoring in about a 50% shot at a 25-basis-point rate cut—0.25 percentage point—when the Fed meets in June. (Reuters)
The Federal Reserve’s Jan. 27-28 meeting minutes revealed that officials were nearly all in sync on leaving rates unchanged, though opinions quickly diverged on the path ahead. Some policymakers—described as “several”—warned rates could have to go higher should inflation remain stubbornly high. Others signaled they’d support more cuts if price pressures drop off as projected. (Reuters)
The rate debate hits close to home for Schwab. Its earnings are tied closely to the spread between what it makes on customer cash and what it pays out. When markets shift their view on where rates are heading, the stock doesn’t wait around—it reacts.
After stumbling out of the gate, U.S. stocks managed to finish Tuesday with modest gains, as tech names bounced back and financials gave the indexes just enough lift to stay positive. “You just see spikes up and spikes down,” said Tim Ghriskey, senior portfolio strategist at Ingalls & Snyder. (Reuters)
Schwab relied on interest income and trading activity as clients kept trading. In January, the company reported higher fourth-quarter profit, crediting gains in interest income and solid trading revenue after a turbulent stretch in markets. (Reuters)
Coming up Friday: the personal income and outlays report, featuring the personal consumption expenditures (PCE) price index—the inflation measure the Fed watches most closely. The Bureau of Economic Analysis has the next release set for Feb. 20. (Bureau of Economic Analysis)
The setup cuts both ways. If inflation comes in hotter, rate hike chatter could pick up, dragging down risk assets—brokers who count on client trading feel that right away. But a quicker-than-expected drop in rates? That’s another issue: net interest spreads get squeezed, never mind markets welcoming looser money.
Next up for Schwab: its February monthly activity report lands March 13 before the bell, the company’s investor calendar shows. Net new assets, client cash, trading volumes—those metrics in the update usually set the tone for quick swings in brokerage names. (Aboutschwab)
