Brokerage stocks posted steep declines on Tuesday, with Charles Schwab down 9%, LPL Financial down 10%, Raymond James Financial down 9% and Stifel Financial down 5%. Morgan Stanley slipped 4%, while Ameriprise Financial gave up about 7%. The move comes amid heightened jitters around artificial intelligence, which have spread from the technology sector into finance following an announcement by Altruist, a fintech specializing in wealth management.

Founded in 2018, Altruist offers a unified platform for investment advisers, covering account opening, trading, reporting and billing. Its new tax-planning feature, integrated with Hazel AI, automates the creation of personalized strategies based on client documents such as tax returns or pay stubs. Automating complex tasks that have historically been carried out by human advisers is fueling fears that established brokerage players could be challenged.

The pullback follows a sharp correction in software stocks the previous week, driven by concerns over new AI tools, particularly in "vibe coding." Emerging players such as Robinhood and Public are already gaining market share with low-cost, tech-driven offerings, including investment assistants or AI-based ETF creation tools. Analysts say each announcement of this kind triggers renewed, swift selling in sectors seen as vulnerable to faster disruption.