Charles Schwab, Raymond James, and Stifel stock prices decline, AI raises concerns about consulting models

LootboxPhobia · 2026-02-12T21:58:05+00:00

Financial services stocks have recently experienced a sell-off, with companies like Charles Schwab and Raymond James Financial seeing significant declines. This volatility is related to the release of AI-driven tax planning tools, as the market worries that artificial intelligence could disrupt traditional financial service models, leading to a decline in investor confidence.

LootboxPhobia

2026-02-12 21:58:05

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Investing.com - Charles Schwab (NYSE:SCHW) stock fell 7% on Tuesday, while Raymond James Financial (NYSE:RJF) declined 7%, and Stifel Financial (NYSE:SF) plummeted 6%, as the financial services sector experienced a sell-off. Morgan Stanley (NYSE:MS) stock dropped 3%.

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This sharp decline occurred after the fintech platform Altruist announced the launch of a new AI-driven tax planning tool within its Hazel platform. This new feature allows financial advisors to automatically analyze tax forms, financial statements, and other documents to create personalized tax strategies for clients within minutes.

Market observers linked the sell-off in financial stocks to growing concerns that artificial intelligence could disrupt traditional financial service business models. This reaction is similar to recent sell-offs in the software and insurance sectors driven by AI-related factors.

Altruist’s announcement emphasized how its AI tool “expands the scope that a single advisor can handle” and “makes generic advice harder to justify,” according to founder and CEO Jason Wenk. The platform promises to automate core advisory tasks, including tax planning, client communication, and task prioritization.

Financial blog Zero Hedge captured market sentiment with a witty remark about the decline in financial stocks, questioning “whether a chatbot has launched a discounted brokerage service,” reflecting growing anxiety over AI potentially replacing human financial advisors and traditional brokerage services.

The Hazel platform was launched in September 2025 and has reportedly been adopted by over 1,000 wealth managers, representing the latest AI advancement that threatens established financial firms by automating complex advisory functions that typically require extensive human expertise.

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