Financial sector stocks fall as traders rotate into tech

Investing.com -- Financial sector stocks tumbled Tuesday, with wealth management and banking names leading declines as traders rotated capital toward technology stocks amid growing interest in Meta’s Muse AI agent.

Charles Schwab Corp. dropped 5.5%, marking the steepest decline among major financial stocks. Allstate Corp. fell 5.0%, while Raymond James Financial Inc. sank 4.5%.

Ameriprise Financial Inc. declined 3.8%, and Progressive Corp. slipped 3.2%. State Street Corp. also fell 3.2%, while Brown & Brown Inc. dropped 3.1%.

Major banking institutions were not spared from the selloff. Morgan Stanley (NYSE: MS) declined 3.5%, Bank of America (NYSE: BAC) fell 3.4%, and JPMorgan Chase & Co. slid 3.0%. Northern Trust Corp. rounded out the decliners with a 2.7% drop.

The rotation out of wealth management and financial services names came as market participants redirected capital toward technology stocks, particularly those positioned to benefit from developments in artificial intelligence, amid growing interest in the use of AI agents.

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