Meta Platforms' Muse AI agent added to pressure on financial stocks Tuesday as investors weighed potential disruption to wealth management, uncertainty around AI-related initial public offerings and a flattening Treasury yield curve. The S&P 500 Financial index closed down 2%, while the S&P 500 bank index fell 3%. Charles Schwab declined 6.1%, Ameriprise Financial lost 4.4% and Raymond James fell more than 3%. The two-year-to-10-year Treasury spread narrowed to as little as 17.90 basis points, its flattest level since March 2025, compared with 55.5 basis points on Aug. 18. SB Energy postponed its IPO roadshow and Holtec suspended its planned US IPO, although Gabelli Funds portfolio manager Macrae Sykes said the longer-term outlook for banks remained favorable.