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This Week's Bonus Article AI Panic Hits Wall Street: 3 Financial Stocks on SaleBy Dan Schmidt. Article Posted: 2/27/2026. 
Key Points - AI disruption fears hit the financial sector this month following news of automated tax planning tools and mass unemployment scenarios.
- While the fears of AI disruption have merit, the selloff is likely overblown and more related to a rerating of overpriced stocks.
- Many of the stocks caught in the crossfire now look attractive on valuation grounds, which could be an opportunity for value-seeking investors.
- Special Report: [Sponsorship-Ad-6-Format3]
It feels like there's a new artificial intelligence–related crisis every month. February was no different, as several financial firms announced new AI tax-planning tools. That news landed in an already jittery market: sector rotations have been picking up, and high-multiple stocks have been punished for even minor stumbles. This particular selloff, however, looks overblown — and it may have created buying opportunities in quality companies that suddenly went on sale. Why Financial Firms Sold Off—And Why It's Overblown Two shockwaves hit the financial sector over the last three weeks, triggering steep declines in many large-cap shares. The first came from a fintech firm called Altruist, which launched a tax-planning tool in its AI platform, Hazel. Hazel can automate many tasks traditionally handled by tax advisors, such as collecting and reviewing 1040s, 1099s, 1098s and other IRS forms and financial statements, turning hours of work into minutes of number-crunching. A second (and more speculative) panic hit late in February when Citrini Research published a piece sensationally titled The 2028 Global Intelligence Crisis. The article laid out a scenario of mass white-collar displacement by 2028 that would push unemployment higher and deeply depress markets. Despite a preface acknowledging the piece is a hypothetical scenario rather than a prediction, the report helped spark a nearly $300 billion equity wipeout, including a roughly 20% two-day drop for International Business Machines Corp. (NYSE: IBM). AI disruption is a legitimate long-term concern, but these two events prompted moves that look exaggerated. Many companies hit by the selloff aren't meaningfully exposed to Hazel's use cases, and the Citrini scenario reflects the view of a single analyst rather than a consensus forecast. Jittery markets often seize on convenient narratives to justify selling, and these events likely gave nervous investors that excuse. That said, sharp selloffs can create attractive entry points, and several financial firms now look compelling after the pullback. The three stocks below all fell during the recent rout, but a closer look suggests their core businesses remain intact and well positioned despite AI-related headlines. Charles Schwab: Core Businesses Unaffected By Tax-Planning Software Charles Schwab Corp (NYSE: SCHW) dropped nearly 8% in a single day after the Hazel announcement, but it was likely caught in sectorwide crossfire — tax planning represents only a small slice of Schwab's business. Most revenue comes from asset-management fees and interest income on client cash. Schwab reported record revenue in 2025, including 19% year-over-year growth in Q4 2025, and projects 9.5%–10.5% revenue growth for 2026 with a net interest margin in the 2.85%–2.95% range. 
Schwab has a solid balance sheet, expanding margins and technicals that hint at a momentum reversal. The selloff paused near the 200-day simple moving average (SMA), and the Relative Strength Index (RSI) shows signs of easing downward pressure. A move back above the 200-day SMA would likely rekindle bullish momentum. S&P Global: Soft Guidance Could Be a Buying Opportunity S&P Global Inc. (NYSE: SPGI) can't place all the blame for a 20% decline on external forces. The company reported solid earnings and revenue in its Q4 2025 release on Feb. 10 and continues to expand its AI initiatives. But the market reacted to light 2026 guidance, sending the stock down about 9% after the report. Combined with the Hazel news, SPGI took a double hit — yet its core businesses, including ratings and index products, are unlikely to be materially affected by these short-term worries. 
SPGI has been the hardest hit of the three names here; gains from the past year were erased in a few weeks. Still, its technical indicators point to a possible quick rebound. The RSI is beginning to recover after plunging into oversold territory, and the Moving Average Convergence Divergence (MACD) is close to a bullish cross. The stock's more than 3.4% gain on Tuesday — its second-largest of the year — suggests selling pressure may be easing. Raymond James: AI Could Be a Tailwind for the Independent-Advisor Model Raymond James Financial (NYSE: RJF) fell nearly 9% on the Hazel news, but that reaction misunderstands the firm's business model. RJF's network of independent advisors is likely to adopt AI tools like Hazel to broaden service offerings, not to lose clients to them. The company is developing its own proprietary AI platform, Rai, and following the selloff the stock trades at roughly 13 times forward earnings and 1.9 times sales. 
RJF shares briefly dipped below the 50-day and 200-day SMAs this month, but the selloff hasn't been as severe as with SPGI and SCHW, and the longer-term uptrend remains intact. Last summer's Golden Cross still leaves the 50-day and 200-day SMAs in a bullish alignment, and the RSI has fallen back to levels seen in October and December. Despite the headlines, the stock is not in correction territory, and its last excursion below the 200-day SMA was short-lived.
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