Charles Schwab (SCHW) saw its stock price plummet by 5.01% during Thursday's trading session, as the escalating US-China trade war sent shockwaves through the financial sector. The sharp decline comes amid broader market turbulence, with asset managers and financial services companies particularly affected by the growing economic uncertainty.

The latest developments in the trade dispute have heightened investors' concerns about the potential impact on global economic growth and market stability. U.S. President Donald Trump's decision to increase tariffs on China to 125% from 104% has further intensified tensions between the world's two largest economies. This move, coupled with the continuation of a 10% blanket duty on almost all U.S. imports and separate duties on autos, steel, and aluminum, has fueled fears of a prolonged downturn in the markets.

For asset managers like Charles Schwab, the trade war's implications are particularly significant. The company's fees are often tied to the value of assets under management, making it vulnerable to market fluctuations. As uncertainty grows and markets become more volatile, there is a risk of decreased investor confidence and potentially lower asset values, which could directly impact Schwab's revenue streams. The company's stock performance reflects these concerns, with investors reassessing their positions in light of the evolving economic landscape.