Fears over the impact of artificial intelligence (AI) and instability in private credit investments have triggered another wave of selling in bank and asset management stocks. The KBW Bank Index dropped as much as 4.7% on Friday, reaching its lowest point since December of last year, with the index on track for its worst monthly performance since March. All 23 components of the index declined by at least 1.7%, with Zions Bancorp NA, Wells Fargo, and KeyCorp falling more than 5%. Goldman Sachs Group, Citigroup, and Morgan Stanley also retreated. Lenders, payment providers, and asset managers have faced a series of setbacks this month, most notably from emerging AI applications and turmoil in private credit. Block Inc.'s announcement late Thursday that it would cut nearly half of its workforce intensified concerns that AI could soon disrupt a wide range of economic sectors. Just a week earlier, new AI tools had already triggered sell-offs across industries from insurance to wealth management. Widening credit spreads, combined with the collapse of a Wall Street-backed UK mortgage lender, have further fueled worries that bank default rates may rise. Friday's sell-off also affected credit card and payment providers, with Capital One Financial Corp., American Express, and Synchrony Financial each falling at least 5%. Alternative asset managers likewise saw sharp declines, with Apollo Global Management, KKR, and Ares Management Corp. dropping at least 6%.