Driven by Muse’s outstanding user data performance, the Nasdaq 100 surged to a new all-time high. However, behind the tech sector’s euphoria, traditional industries have come under market scrutiny, as investors worry that Muse could disrupt their established business models.
Stocks of major banks, insurers, and online travel agencies declined, as investors fear tools like Meta Platforms Inc.’s personal AI agents may upend companies benefiting from what is known as “consumer inertia”—the tendency for people to keep purchasing certain products out of habit, even when better alternatives exist.
The S&P 500 Financials Index dropped nearly 2%, closing at its lowest level since July, while the broader market remained largely flat. JPMorgan Chase and Wells Fargo both fell more than 3%, Morgan Stanley dropped 2.9%, Allstate Insurance slid 5.5%, and Charles Schwab declined over 6%.
Companies that help users book travel accommodations also suffered, with Booking Holdings Inc. down 2.6%. In Europe, telecom stocks were the worst performers in the Stoxx 600, with France’s Orange SA and UK-based BT Group Plc each falling about 4%. Fitness chain Planet Fitness Inc. closed down 9.5%.
Meanwhile, Meta’s newly launched AI assistant Muse quickly climbed to the top of Apple’s U.S. App Store. The tool integrates with third-party services such as Gmail and OpenTable, enabling it to perform various digital tasks on users’ behalf. Encouraged by these early signs of rapid growth, Meta’s stock jumped 11% on Monday.
Goldman Sachs’ trading division noted in a report that as AI assistants like Muse and Instinct continue improving in areas such as price comparison, travel booking, and customer service interactions, industries reliant on recurring billing, negotiable pricing, and add-on services may face pressure.
The firm warned that if AI agents make it easier and cheaper for consumers to switch providers, sectors including telecommunications, insurance, and utilities will be particularly vulnerable. Its list of “consumer inertia” stocks at risk of disruption includes telecom operators AT&T and T-Mobile, insurers Allstate and Progressive, streaming platforms Netflix and Paramount Skydance, and travel booking sites Expedia and Booking.
Tuesday’s sell-off echoed an earlier plunge this year among software-as-a-service companies following the launch of Anthropic PBC’s Claude Cowork and similar agent tools.
