Charles Schwab Corp (NYSE:SCHW) shares are falling on Tuesday. A new AI product from financial‑software firm Altruist sparked fresh worries about disruption in the wealth‑management industry. Here’s what you should know.
Altruist’s New AI Tool
Altruist unveiled a new AI tool designed to help financial advisors build personalized tax strategies and generate documents like pay stubs and account statements. The announcement triggered a sharp sell-off across wealth‑management and tax‑planning stocks.
Schwab shares fell as much as 9%, while peers faced similar selling pressure — Raymond James dropped 8.5%, LPL Financial slid 8.4% and Stifel Financial lost 7.2%.
According to Bloomberg Intelligence analyst Neil Sipes, the market reaction reflects growing anxiety that AI could reshape or compress traditional advisory business models. Investors are increasingly focused on the risk of fee pressure, efficiency gains being competed away and potential shifts in market share as AI tools become more capable.
The Technical Picture For SCHW
Charles Schwab is currently trading below its key moving averages, indicating a bearish short-term trend. The stock is positioned 5.7% below its 20-day SMA and 2.6% below its 50-day SMA, which suggests that it may face continued selling pressure in the near term.
The RSI is currently at 64.71, which is considered neutral but indicates that the stock is approaching overbought territory. MACD is above its signal line, signaling bullish momentum for Charles Schwab’s stock, suggesting that there is still some strength in the trend, but traders should watch for any signs of weakening momentum.
Key support is at $90.00, while resistance is at $105.00. If the stock tests the support level and holds, it could indicate a potential bounce, but a break below could signal further declines, while a move above resistance could lead to a new uptrend.
Charles Schwab’s stock has shown a strong 12-month performance, up 20.03%, which reflects a solid longer-term trend. This performance indicates that despite recent volatility, the stock has maintained an overall upward trajectory over the past year.
SCHW Price Action: Charles Schwab shares were down 8.78% at $97.80 at the time of publication on Tuesday, according to Benzinga Pro.
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