Wealth Management Stocks Tumble as AI Tax-Planning Tool Sparks Disruption Fears Across Sector
Wealth management stocks took a sharp hit after startup Altruist unveiled an AI-powered tax-planning tool, triggering investor fears about disruption in the financial sector. Charles Schwab fell 7.4%, LPL Financial dropped 8.4%, and Raymond James declined 8.5%. But industry leaders and Wall Street analysts argue AI will enhance rather than replace financial advisors, calling the selloff an overreaction and a buying opportunity.