{
  "id": 9199691,
  "title": "Financial stocks fall with AI and flattening yield curve in focus",
  "url": "https://urgent.news/2026/09/22/financial-stocks-fall-with-ai-and-flattening-yield-curve-in-focus",
  "topic": "ai",
  "section": "AI",
  "published": "2026-09-22T20:51:29.000Z",
  "source": {
    "name": "Channel News Asia",
    "slug": "channel-news-asia",
    "url": "https://www.channelnewsasia.com/business/financial-stocks-fall-ai-and-flattening-yield-curve-in-focus-6403396"
  },
  "original_language": "en",
  "account": "On Tuesday, the S&P 500 Financial index and the bank sector faced pressure as investors grew concerned about competition from artificial intelligence (AI) and the uncertain impact of AI-related initial public offerings (IPOs). The financial index declined by 2% on the day, with Charles Schwab, Ameriprise Financial, and Raymond James among the biggest losers. Schwab dropped 6.1%, Ameriprise 4.4%, and Raymond James 3.1%. The S&P 500 bank index also fell 3%.\n\nThe concerns were fueled by Meta Platforms' AI agent, Muse, which recently surpassed ChatGPT as the most downloaded free app for iPhones. Macrae Sykes, a portfolio manager at Gabelli Funds, noted that investors are increasingly worried about potential competition from AI in the wealth management sector. He believed that today's sell-off was largely a knee-jerk reaction.\n\nSykes also pointed to the flattening of the US bond market, particularly the yield curve between short- and long-dated bonds, which could negatively affect bank returns. The yield curve, a key indicator of economic expectations, had reached its flattest level since March 2025, with the two- to 10-year Treasury note gap at 17.90 basis points on Tuesday.\n\nTraders' increased bets on Federal Reserve rate hikes have contributed to the flattening of the yield curve. Rick Meckler, a partner at Cherry Lane Investments, suggested that a tipping point exists where aggressive rate hikes could slow economic growth. Concerns also arose regarding the IPO market for AI-related companies, with SB Energy, a subsidiary of SoftBank, postponing its planned US IPO and Holtec suspending its US IPO plans.\n\nDespite the short-term volatility, Sykes maintained a positive outlook for bank stocks, stating that while the immediate noise affected their perception, the long-term outlook for the sector remained strong. He emphasized that the fundamentals of the banking industry, including a robust economy and low unemployment, bode well for the future.",
  "summary": null,
  "key_points": [
    "S&P 500 Financial index declines 2% amid AI competition concerns",
    "Charles Schwab, Ameriprise Financial, Raymond James among major losers",
    "Flattening yield curve raises worries about bank returns"
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "CNA - Business",
        "title": "Financial stocks fall with AI and flattening yield curve in focus",
        "url": "https://urgent.news/2026/09/22/financial-stocks-fall-with-ai-and-flattening-yield-curve-in-focus-9201370",
        "published": "2026-09-22T20:51:29.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}