US Open: S&P 500 at all-time high 📈Charles Schwab decline 4.5% despite strong earnings report

US equities are flat on Thursday, giving back some early gains as the recent rally in technology stocks began to fade. The pullback comes just a day after the S&P 500 broke above the symbolic 7,000 level, highlighting growing sensitivity to short-term catalysts. Investors are now balancing geopolitical developments with earnings season and mixed macro signals. However, the overall sentiment is still very strong, while S&P 500 hit new all-time high.

• Nasdaq and Dow fell around 0.2%, while the S&P 500 slipped ~0.1% after opening higher. The move follows a strong prior session that pushed the S&P 500 to a historic close above 7,000
• Weakness was concentrated in Big Tech, with the “Magnificent Seven” segment turning negative and dragging broader sentiment.
• The Roundhill Magnificent Seven ETF declined, signaling cooling momentum in the market’s key leadership group
• Geopolitics remains a central driver: markets are closely watching US–Iran negotiations on extending the ceasefire beyond April 22
• Ongoing diplomatic engagement supports risk sentiment, but lack of clarity limits further upside in the short term
• Earnings season is gaining traction:
  • Taiwan Semiconductor and PepsiCo delivered beats on both revenue and earnings
  • Charles Schwab exceeded profit expectations but disappointed on revenue
  • Netflix results after the US session close are seen as a potential near-term catalyst for sentiment
• Economic data paints a mixed picture:
  • Initial jobless claims fell to 207K, signaling continued labor market resilience
  • Industrial production declined 0.5% in March, missing expectations and raising concerns about growth momentum
• Market structure shows divergence beneath the surface:
  • Nasdaq indices continue to test record levels, extending a historic winning streak
  • Semiconductor stocks are pulling back, breaking a key driver of the recent rally
  • Small-cap tech is emerging as a relative outperformer, with fresh intraday highs
  • Broader participation remains limited, as large-cap sectors lag behind in setting new records
• Overall, the market is transitioning from momentum-driven gains to a more selective, data- and event-driven phase, with volatility likely tied to both macro headlines and earnings surprises.

Source: xStation5

Source: xStation5

Charles Schwab earnings stronger than expected

Charles Schwab shares are down more than 4% today, after the company published mixed results for the first quarter of 2026, with profitability exceeding expectations while revenue came in slightly below forecasts. The company posted adjusted earnings per share of $1.43, beating estimates of $1.39 and rising significantly from $0.99 a year earlier.

Total net revenue reached $6.48 billion, narrowly missing expectations of $6.51 billion. Net interest revenue also fell short of forecasts at $3.14 billion, while the net interest margin came in at 2.88%, below the expected 2.94%. Despite this, Schwab saw strong growth in client activity and asset inflows.

Client engagement remained robust, with core net new assets totaling $140 billion and total client assets rising 19% year-over-year to $11.77 trillion. Bank deposits exceeded expectations, reaching $253 billion compared to the estimated $245.19 billion. The company also added 1.3 million new brokerage accounts, surpassing forecasts of 1.19 million. Overall, the results highlight strong underlying client growth and asset accumulation, even as some revenue metrics lagged slightly behind market expectations.

Source: xStation5