Wealth Manager Stocks Sink as Traders Flee Next AI Casualty

Feb 10, 2026

Guest

Mark Gongloff

Guest

Cheryl McKissack Daniel

Mark Gongloff, climate and energy policy editor who explains EPA moves and implications. Cheryl McKissack Daniel, fifth-generation construction leader shaping major infrastructure projects. Kathy Jones, Schwab fixed-income strategist on Treasuries and Fed signals. Neil Sipes, financials analyst breaking down wealth-manager earnings and AI-driven market moves. They debate AI shocks to wealth firms, treasury trades, infrastructure bottlenecks and climate regulation shifts.

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ADVICE

Monitor Robinhood’s Customer Maturation

Track shifts in Robinhood's revenue mix as crypto and options activity drives volatility.
Monitor customer engagement metrics to assess whether users will 'graduate' to traditional wealth platforms.

INSIGHT

Different Client Bases Drive Different Businesses

Robinhood and Schwab serve distinct client profiles with very different monetization.
Neil Sipes suggests Robinhood could resemble Schwab only if its customer base ages and wealth increases over decades.

INSIGHT

Stocks Overreacted To AI Tax Tool

The market reacted sharply to an AI tax-strategy tool, triggering big one-day drops in wealth managers' stocks.
Neil Sipes says the reaction may be overdone because relationships still drive much of the advice business.

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An artificial intelligence tool aimed at creating tax strategies sparked a selloff in wealth-management stocks Tuesday as investors fear the business could be at risk from automated advice.

The innovation puts the wealth-management industry in the crosshairs of AI competition, the way it did for software stocks and private credit firms last week and insurance brokerage shares on Monday. Investors responded precisely the way they did before — by unloading the stocks. Raymond James Financial Inc. dropped 8.8% for its worst day since March 2020, while Charles Schwab Corp. sank 7.4%% and LPL Financial Holdings Inc. lost 8.3%, their worst sessions since April.

The move appeared to catch Wall Street off guard, as Charles Schwab is the only stock with a sell rating, and it has just one among the 24 analysts tracking the company.

The new tool, unveiled by closely held tech startup Altruist Corp. on Tuesday, helps financial advisers personalize strategies for clients and create pay stubs, account statements and other documents, the company said in a statement. Altruist’s founder and Chief Executive Officer Jason Wenk started his career at Morgan Stanley and Chief Operating Officer Mazi Bahadori worked at Pimco Investment Management, so the firm’s leadership has experience with how Wall Street and the investment community operate.

Today's show features:
Bloomberg Intelligence Financials Analyst Neil Sipes breaks down quarterly earnings from Robinhood Markets and the hit to wealth-management stocks on AI fears
Kathy Jones, Chief Fixed Income Strategist, Schwab Center for Financial Research, on the treasury trade and US monetary policy outlook
Cheryl McKissack Daniel, Chair of the Board at McKissack & McKissack, on her family-run construction business, which dates back more than 120 years, and her appointment as the next Chair of the New York Building Congress
Bloomberg Opinion Editor Mark Gongloff on key policy changes at the Environmental Protection Agency and new financing for a project aimed at installing small nuclear reactors underground

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