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Meta's Muse AI causes Schwab selloff
CNBC • • business
Key Points:
- Meta's new consumer AI product, Muse, has caused significant market disruption, negatively impacting established brokerage firms like Charles Schwab, whose shares fell 6% and are down over 8% since the announcement.
- Robinhood's stock rose to a year-to-date high following its launch of AI agents in May that can trade and manage portfolios, highlighting a growing divide between traditional brokers and tech-driven platforms.
- Other financial firms such as LPL Financial Holdings, Raymond James Financial, and Interactive Brokers also saw share price declines amid broader market pressures, including rising interest rates.
- While Meta's AI assistant does not trade or provide financial advice, its capabilities in investment tracking and portfolio analysis signal potential disruption to fee-based financial intermediaries.
- Schwab is responding by partnering with AI firm Anthropic to develop Claude for Financial Advisors, aiming to integrate AI tools, but industry experts note that AI and tokenization pose a threat to traditional brokerage revenue models.
