Shares of major banks, insurers and online travel agencies slid on Tuesday as investors fear that tools like Meta Platforms Inc.’s personal AI agent could disrupt businesses that benefit from so-called consumer inertia, the tendency to keep buying something out of habit even when a better alternative exists.
The S&P 500 Financials Index shed nearly 2% to close at the lowest level since July, trailing a broader market that was roughly flat. Shares of JPMorgan Chase & Co. and Wells Fargo & Co. fell more than 3% each, while Morgan Stanley declined 2.9%. Insurer Allstate Corp. fell 5.5% and brokerage Charles Schwab Corp. finished more than 6% lower.