The AI threat wrecked software stocks. Now broker stocks look next with LPL down 11%
Published Tue, Feb 10 2026
2:10 PM EST
Michelle Fox@MFoxCNBCWATCH LIVEKey Points
- Financial services firms tanked after the launch of a new AI-powered tax planning tool that promises to do the work "within minutes."
- Tech platform Altruist announced the offering within its AI platform, Hazel.
- Financial stocks are the latest to fall on AI threats. Software stocks have also been hit.
Traders work at the New York Stock Exchange on Feb. 10, 2026.
NYSE
Shares of financial services firms tanked Tuesday after the launch of a new tax planning tool powered by artificial intelligence that promises to do the work "within minutes."
LPL Financial tumbled nearly 11%, while Charles Schwab and Raymond James Financial both dropped more than 9% amid fears that AI will disrupt their industry next. Morgan Stanley dropped 4%.
Tech platform Altruist announced the offering within its AI platform, Hazel, and said it "helps advisors create fully personalized tax strategies for clients by reading and interpreting their 1040s, paystubs, account statements, meeting notes, emails, and custodial and CRM data, and applying deep tax logic to the analysis."
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LPL Financial, 5 days
It appears investors are worried about AI replacing some of the profitable offerings of established financial advisor firms, or at the very least, eating away at their margins.
We saw this earlier this year with the software stocks after Anthropic's latest AI model appeared able to be allow businesses to do legal work and build programs for which they would otherwise pay an expensive license.
The iShares Expanded Tech-Software ETF (IGV) is down by 19% this year as shares of companies like ServiceNow and LegalZoom cratered.
The iShares U.S. Broker-Dealers and Securities ETF was off by 4% on Tuesday.