$WFC

Charles Schwab fell 5% on Tuesday as investors fear AI assistants like Meta's Muse will move idle cash from brokerage accounts, reducing broker profits. Other brokers and banks also saw declines, while AI-related stocks rose. Schwab's net interest revenue was $3.36B in Q2 2026, 47.4% of total revenue. Analysts note the threat is real but the market may have overreacted. Apple's shares rose on reports of a new wearable device.

Wells Fargo (WFC) shares declined despite launching 'Get Money Ready,' a free digital financial education platform. The tool offers personalized coaching and educational content. According to the 2026 Wells Fargo Money Study, 81% of respondents seek new financial management approaches, with higher demand among Gen Z and Millennials.

Wells Fargo reduced its S&P 500 year-end target to 7,700 from 7,950, citing concerns over hyperscaler capital spending and crowded equity positioning. Chief strategist Ohsung Kwon expects AI spending to impact earnings justification post-2027, with required demand rising significantly. The SPDR S&P 500 ETF (SPY) has gained 12.6% year-to-date as of September 23, 2026.

The Federal Reserve raised the benchmark rate to 3.75%-4%, with more hikes expected. Visa (V) and Wells Fargo (WFC) are highlighted as stocks that may perform well in this environment. Visa's transaction fees benefit from economic activity and inflation, while Wells Fargo's net interest income is up, with full-year NII expected to reach $50 billion.

Shares of banks, insurers, and travel agencies fell as investors worry about Meta's AI agent, Muse, disrupting industries reliant on consumer inertia. Meta's stock rose 11% on Monday. Affected companies include JPMorgan, Morgan Stanley, Allstate, Charles Schwab, Expedia, and Booking Holdings. Goldman Sachs identifies telecoms, insurance, and utilities as sectors at risk.

WELLS FARGO & COMPANY/MN (WFC) filed an SEC Form 8-K — Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers: Compensatory Arrangements of Certain Officers. Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers. On September 23, 2026, Wells Fargo & Company (the “Company”) announced the appointment of Scott E. Powell as its Chief Risk

Wells Fargo's chief risk officer, Derek Flowers, will retire in mid-January after 28 years. He will be succeeded by COO Scott Powell. CEO Charlie Scharf praised Flowers' contributions to risk management and culture. The bank plans to name Powell’s successor soon.

Meta's Muse AI agent caused a selloff in financial, travel, and telecom stocks. Allstate, Progressive, Charles Schwab, JPMorgan, Morgan Stanley, Wells Fargo, Expedia, Booking Holdings, Planet Fitness, Verizon, AT&T, and T-Mobile declined. Goldman Sachs warned of disruption in habit-driven industries. Muse's success sent Meta shares up 11% on Monday.

Goldman Sachs reports AI will boost bank revenues through fees and cost savings, with Morgan Stanley cited for 18.62% revenue growth. US banks discuss AI more on earnings calls, and the Fed notes increased lending to AI-related firms. Major US banks raised prime lending rates to 7%. OpenAI launched ChatGPT for Financial Services with Morgan Stanley and Evercore. Anthropic plans IPO with Morgan Stanley and Goldman Sachs. Investment banking fees fell 15% YoY to $9.7B, with equity markets growing.

JPMorgan Chase (JPM), Wells Fargo (WFC), and Goldman Sachs (GS) fell 1%, 3%, and 4% respectively after the Fed's rate hike, despite banks typically benefiting from such moves. JPMorgan's CEO warned of potential challenges ahead, including rising deposit costs and increasing card charge-offs. The Fed raised rates to 4% on September 17, 2026, the first hike in three years.