AI Fears Spread to Financials: Raymond James (RJF-US) Posts Largest Daily Drop Since 2020

On February 7, 2026, AI-driven volatility spread from software to financial services, sending wealth management stocks sharply lower. Raymond James (RJF-US) fell 8.7%, its worst single-day performance since March 2020, followed by Charles Schwab (SCHW-US) down 7.4%. The catalyst was Altruist’s announcement of an AI tool that can parse financial documents and automatically generate personalized tax strategies and other records in minutes. Investors already worried about AI replacing白领 work; concerns escalated over potential displacement of wealth management advisors and compression of margins. Other firms followed: LPL Financial (LPLA-US) down over 8%, Stifel (SF-US) over 3%, and major banks including Bank of America (BAC-US) down 1.8% and Morgan Stanley (MS-US) down over 2.4%. Analysts suggest the reaction is exaggerated, noting the tools are not novel and reflect heightened vulnerability to AI narratives rather than fundamental change. Citigroup’s Devin Ryan said the market’s fragility is the primary driver, not earnings or balance sheet changes.