** Financial stocks set to end the week in negative territory, underperforming broader markets

** S&P 500 Financials .SPSY down 2%, vs. 0.6% decline in the S&P 500 .SPX

** Wells Fargo WFC.N, Goldman Sachs GS.N, Citigroup C.N and Morgan Stanley MS.N slide 5% each

** JPMorgan Chase JPM.N down 2.9%, Bank of America BAC.N falls 4.5%

** Ares Management ARES.N down 5.6%, KKR KKR.N slides 5.6%, Blackstone BX.N falls 2.8%, Carlyle Group CG.O down 4.9%, TPG TPG.O down 4.6%

** Analysts point towards combination of rising Treasury yields and renewed AI disruption fears dragging down financial stocks

** "The selloff across financials today appears to be driven by a combination of rising rate concerns, renewed credit risk fears, and a general rotation out of cyclical sectors, AI fear about impacting the economy, as investors reassess profit expectations" - Adam Sarhan, chief executive of 50 Park Investments in New York

** ""For banks, worries about narrowing net interest margins and potential credit losses are weighing on sentiment. Payments and private equity names are getting hit as higher borrowing costs and weaker consumer or deal activity expectations bite into growth outlooks. In short, this looks like a classic “flight to safety” day in the market" - Sarhan

(Reporting by Arasu Kannagi Basil and Medha Singh in Bengaluru)

((ArasuKannagi.Basil@thomsonreuters.com;))