Meta's Muse AI agent sparks steep declines in major US bank stocks

The sell‑off extended to brokerage firms, with Charles Schwab losing more than 6% and LPL Financial tumbling over 7%. Analysts linked the moves to heightened attention on Muse ahead of Meta’s Connect conference, where the company is expected to showcase the agent’s ability to evaluate savings accounts, interest rates, investment products and even move money between providers. Such capabilities raise concerns that AI could steer consumers away from established banks and brokerages, intensifying competition on fees, rates and product offerings.

Bank executives, including Wells Fargo’s finance chief Mike Santomassimo and Bank of America CEO Brian Moynihan, have already warned of slower growth in some segments, but the AI‑related volatility adds a new layer of uncertainty to the sector’s outlook.