New York, Feb 10, 2026, 14:45 EST — Regular session.
- Shares of Morgan Stanley dropped roughly 4%, with the tech-driven selloff spilling into brokerage stocks.
- Altruist rolled out a new AI-driven tax-planning tool for advisers.
- U.S. jobs and inflation numbers are on traders’ radar this week as they look for signals on rates.
Morgan Stanley (MS.N) dropped 3.7% to $175.58 in afternoon trade Tuesday, after shares bounced around in a $173.62 to $184.59 range.
Wealth-management stocks took a hit after fintech Altruist introduced an AI-driven tax-planning product. “The selloff appears tied to broader concerns about AI disrupting the financial advice and wealth-management model,” said Neil Sipes, an analyst at Bloomberg Intelligence. 1
For Morgan Stanley, that’s significant. Investors have long viewed its wealth arm, E*TRADE included, as a more reliable fee machine than its trading or dealmaking operations. But on Tuesday, the reputation for “steady” took a hit.
Losses ran deeper for others. Charles Schwab dropped 7.7%. LPL Financial plunged 10.2%, with Ameriprise off 6.9%.
Altruist is touting its Hazel platform’s ability to scan U.S. tax returns (Form 1040) and other documents, then spit out personalized tax strategies in just minutes—no manual number crunching required. “Tax planning is one of the most powerful ways advisors can improve outcomes, but it’s also slow and mentally draining,” said Jason Wenk, the company’s founder and CEO. Hazel also simulates “what-if” scenarios, Altruist says, and relies on zero-data-retention agreements with its AI partners, so customer data isn’t stored or used to train models. The company emphasizes Hazel sticks to analysis, not tax advice. 2
Worries over AI-driven shakeups have been ricocheting through markets after last week’s sharp selloff in software stocks. Morgan Stanley’s Katy Huberty called the valuation drop in U.S. software “sentiment-driven, not fundamental.” 3
Morgan Stanley flagged that nerves are rattling credit markets, too, pointing out software makes up around 16% of the $1.5 trillion U.S. loan market. “We expect continued price volatility in loans, but a near-term spike in defaults is unlikely,” the bank wrote in a note. 4
Morgan Stanley is stepping up its focus on deals, bringing back longtime banker Michael Grimes as chairman of investment banking, according to a memo reviewed by Reuters. Grimes returns to a base in Menlo Park, California, where the firm is setting up for a wave of tech IPOs expected in 2026. 5
The market’s retreat seems to be outpacing what’s actually happening. Uncertainty remains over whether tools such as Hazel really shift adviser habits fast enough to hit major firms’ top lines—and questions persist about how compliance teams and regulators will handle large-scale AI-powered tax analysis.
Macro’s on deck. The January U.S. Employment Situation hits at 08:30 a.m. ET Wednesday, Feb. 11. Markets won’t wait long—the January CPI lands Friday, Feb. 13 at the same time. Both data drops can swing rate expectations and stir risk appetite, especially among banks and brokers. 6
