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Shares of Charles Schwab, Morgan Stanley and Raymond James sank on Tuesday, in the latest round of selling fueled by investor concerns about the disruption of AI start-ups on established companies.
A selloff in several US financial services companies began in late trading after fintech Altruist announced the launch of a tax-planning tool within its AI platform, Hazel.
Investors sold shares in traditional financial services groups that were typically sought by clients for their advisors’ guidance on wealth management and tax strategies.
Schwab and Raymond James’ share price gains for 2026 ended, with the stocks closing 7.4 percent and 8.7 percent lower, respectively. Rival Stifel Financial declined 3.8 percent and ETrade parent Morgan Stanley lost 2.4 percent.
The move echoes the selloff that gripped Wall Street last week, as investors endured three sessions of heavy selling that analysts say was partly caused by AI company Anthropic launching marketing, legal and finance tools for its cloud cowork platform.
Software companies bore the brunt of last week’s selloff as investors worried about the impact of AI on their businesses. Alphabet, Amazon, Meta, and Microsoft recently said they would spend a combined $660 billion on AI build-out this year, serving as a reminder that most companies aren’t slowing down their ambitions around the technology.
On Monday, shares of US insurance brokers including Willis Towers Watson, Aon and Ryan Specialty fell sharply after OpenAI said it would integrate an insurance provider into ChatGPAT.
Los Angeles-based Altruist said Tuesday that its new planning tool can help advisors create personalized tax strategies for clients “within minutes” by reading their tax returns, pay slips and meeting notes. It can also explore “what if” scenarios, including asset sale or retirement transition.
Altruist founder and chief executive Jason Wenk said of the company’s Hazel platform, “It expands what an advisor can handle, raises the bar on results, and makes it much harder to justify average advice.”
The broader S&P 500 closed 0.3 percent lower in a volatile session on Tuesday, while the Nasdaq Composite dropped 0.6 percent.
