Charles Schwab Stock Got Hit in the Bank Mess. Be Careful.

As Silicon Valley Bank imploded and shares of regional banks tumbled earlier this month, investors ramped up their scrutiny of

Charles Schwab

—and sent shares spiraling downward. Executives, including founder Chuck Schwab, acted quickly to reassure investors. Shares rebounded, but at $53, they are down 36% this year and far below their 52-week high of $93.

Wall Street analysts suggest that investors, spooked by liquidity concerns everywhere, have overreacted. But there are clear reasons to be cautious toward the stock (ticker: SCHW). Rising interest rates and outflows of clients’ cash could take a sizable bite out of Schwab’s earnings.