Wealth Management Stocks Fall on AI-Driven Disintermediation Fears (SCHW, RAYJ, LPL, STIF)

Wealth-management stocks fell Tuesday as traders sold off shares amid growing concern that AI-driven automation could disintermediate traditional advisory services. Charles Schwab Corp. (SCHW), Raymond James Financial Inc. (RAYJ), LPL Financial Holdings Inc. (LPL) and Stifel Financial Corp. (STIF) posted their worst days since April, declining 7%–8% on the news. Altruist Corp., a privately held fintech startup, unveiled an AI tool for personalized tax strategies and document generation Tuesday. The move intensified sector-wide AI disruption fears, reflected in broader selloffs of software and private credit stocks earlier this week. Analysts note uncertainty over the pace and depth of AI adoption, with some warning the reaction may be exaggerated. However, the sell-off underscores shifting investor focus to efficiency gains, fee compression and potential share shifts in the wealth management model. The selloff follows similar AI-related jitters in insurance brokers last week, which pared through their worst session since October, and has since rebounded. Private equity and alternative asset managers have also seen gains as the broader AI theme continues to test traditional financial services.