Financial stocks tumbled sharply on February 10, 2026 as investors reassessed the threat artificial intelligence poses to traditional advisory business models. The selloff was triggered by fintech platform Altruist’s announcement of an AI tool capable of performing complex tax planning “within minutes.”
Market Impact
Stock
Decline
Sector
LPL Financial
-8.3%
Wealth Management
Charles Schwab
-7.4%
Brokerage
Morgan Stanley
-2.4%
Investment Banking
The AI Threat to Advisory Fees
The financial services industry generates billions annually from tax planning, portfolio management, and wealth advisory services. AI tools that can replicate these functions threaten to compress fee structures across the industry.
Key concerns for investors:
AI tools can perform tax optimization that previously required expensive advisors
Pattern Recognition: Software Stocks First, Now Finance
This selloff follows the dramatic decline in software stocks after Anthropic’s Claude Cowork plugins demonstrated AI’s ability to replace specialized enterprisesoftware. Investors are now extending this thesis to financial services.
The S&P 500 slipped 0.33% while the Nasdaq fell 0.59%, reflecting broader concerns about AI disruption spreading beyond the technology sector.
Gennaro is the creator of FourWeekMBA, which reached about four million business people, comprising C-level executives, investors, analysts, product managers, and aspiring digital entrepreneurs in 2022 alone | He is also Director of Sales for a high-tech scaleup in the AI Industry | In 2012, Gennaro earned an International MBA with emphasis on Corporate Finance and Business Strategy.
