Stocks of broker-dealers have been weakening since Labor Secretary Alexander Acosta said earlier this week that the government is sticking with the new fiduciary rule's June 9 compliance date.
Though the department is seeking public input on the rule, the financial markets see the sweeping regulatory changes as going forward, at least in the short term.
LPL Financial, for instance, moved down about 0.8% on Wednesday, while Primerica weakened 3%; both had declined Tuesday. Stifel Financial fell about 0.7%, and Raymond James declined 0.6% two days after Acosta made his position clear in an op-ed in Monday's The Wall Street Journal.
"While the headline is a negative for the life insurers, brokers, and asset managers, we do not think investors should overreact to the news," said KBW analysts Brian Gardner and Michael Michaud in a note.
It's possible that future changes to the Labor Department rule could benefit life insurers, broker-dealers and others, they add.
