Wall Street’s New Trade Is Dumping Stocks in AI’s Crosshairs (4)

On Wall Street, rising fears about artificial intelligence keep pummeling shares of companies at risk of being caught on the wrong side of it all, from small software makers to big wealth-management firms.

The latest selloff was triggered by a tax-strategy tool rolled out by a little-known startup, Altruist Corp. The perceived threat sent shares of Charles Schwab Corp., Raymond James Financial Inc. and LPL Financial Holdings Inc. down by 9% or more over the last two days and hit European companies, too.

It was the deepest slide for some of the stocks since the market’s trade-war meltdown ...