New York, January 23, 2026, 20:13 EST — Market closed
- Morgan Stanley shares dropped 2.2% on Friday, closing at $179
- Wall Street enters a busy week, eyeing the Fed decision alongside major earnings reports
- SpaceX’s IPO lead-bank discussions and new analyst price targets are fueling buzz around upcoming deals
Morgan Stanley (MS.N) shares dropped 2.2%, closing at $179 on Friday, capping off a turbulent week for U.S. stocks before the weekend.
This shift is crucial as the upcoming sessions will put two key factors to the test—interest rate levels and whether investors stay active or pull back from trading, both of which typically drive sharp moves in brokerage stocks.
The first Fed meeting of the year kicks off the week, alongside a wave of major tech earnings and ongoing geopolitical tensions that have had investors jittery, swinging in and out of risk assets in rapid succession. 1
On Friday, the Dow dropped 0.58%, the S&P 500 ended close to unchanged, and the Nasdaq gained 0.28%, despite Intel’s shares sliding on a gloomy forecast. “We feel pretty good about where we are today,” said Jason Blackwell, chief investment strategist at Focus Partners Wealth. 2
Morgan Stanley tumbled, tracking declines at other major banks. Goldman Sachs lost 3.7%, while JPMorgan Chase slipped roughly 2%.
Morgan Stanley is reportedly one of four Wall Street banks in the running for senior roles on SpaceX’s possible IPO, according to a source familiar with the situation who spoke to Reuters. The banks did not comment, and SpaceX has yet to respond to requests for comment. 3
Analysts haven’t been quiet either. Bank of America stuck with a buy rating on Morgan Stanley, boosting its price target to $220. They said “the blueprint is in place,” according to 8 .
Morgan Stanley’s latest quarter remains a key reference point for investors. The bank posted $17.9 billion in net revenues and $2.68 earnings per diluted share for Q4. CEO Ted Pick called the year’s results “outstanding,” highlighting a year-end total of $9.3 trillion in client assets across Wealth and Investment Management. 4
The Federal Reserve’s rate-setting Federal Open Market Committee will meet next on Jan. 27–28, marking the next key macro event. 5
Strategists describe the market as unsettled after a week marked by sharp swings. “It’s been a short but steep roller-coaster ride,” said Yung-Yu Ma of PNC Financial Services. Franklin Templeton’s Chris Galipeau pointed to earnings as the main factor, noting investors are grappling with high valuations. Oxford Economics’ Michael Pearce expects the Fed to “take an extended pause.” 6
Morgan Stanley bulls face a clear risk: any renewed spike in trade tensions or a Fed signal more hawkish than anticipated could weigh on stocks, stall deals, and squeeze brokers once more. The next major event arrives Wednesday, with the Fed’s policy decision due at 2:00 p.m. ET, followed by Chair Jerome Powell’s press conference at 2:30 p.m. ET. 7
