US Brokerage Stocks Plunge as AI Tax Tools Spark Disruption Fears

• Shares of major US brokerage and wealth management firms fell sharply after Altruist unveiled new AI-driven tax planning capabilities.
• LPL Financial, Raymond James Financial, Charles Schwab, and Ameriprise Financial saw significant declines, with some falling over 8%.
• Investors are concerned that AI-first platforms could automate services traditionally core to wealth managers' value proposition.
• Altruist's Hazel AI platform automates personalized tax strategies by analyzing client documents, raising fears of pricing pressure.
• While some believe the market reaction is excessive, the incident highlights AI's potential to disrupt seemingly shielded sectors.