STOCK MARKET: The AI threat wrecked software stocks. Now financial stocks look next with LPL down 11%

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.”