Investing.com -- Charles Schwab (NYSE:SCHW) stock fell 2% after the financial services company released its May monthly activity report showing a significant decline in new brokerage accounts compared to the previous month.
New brokerage accounts totaled 336,000 in May, representing a 23% drop from the 439,000 accounts opened in April. Despite this monthly decline, the company noted that new accounts were still up 7% compared to May 2024.
The report highlighted some positive metrics, including core net new assets of $35.0 billion, which increased 13% compared to the same month last year. Total client assets reached $10.35 trillion at the end of May, up 12% YoY and 5% higher than April 2025.
Investor engagement remained robust with daily average trades exceeding 7 million for the fifth consecutive month. However, transactional sweep cash declined by $5.2 billion to end May at $398.1 billion.
The company also reported that quarter-to-date transactional sweep cash is down less than 3% from March 2025 levels, which has helped Schwab reduce high-cost funding at its banks to approximately $32 billion by the end of May.
The market’s negative reaction appeared primarily focused on the monthly decline in new account openings, overshadowing the year-over-year growth in assets and new accounts.