NEW YORK, Feb 12, 2026, 15:44 EST — Regular session
- Morgan Stanley dropped over 4% in late afternoon trade.
- After the robust jobs numbers, investors are getting into position ahead of Friday’s U.S. inflation data.
- CEO Ted Pick’s pay package for 2025, along with his deferrals, was laid out in a new filing.
Shares of Morgan Stanley slid 4.2% to $169.23 late Thursday afternoon, the stock tumbling as U.S. financials endured another bumpy patch this week with investors shifting to risk-off positions.
This decline is hitting as traders juggle two key questions: Will Friday’s consumer price index keep the Federal Reserve holding back on rate cuts, and do fresh AI headlines force a rethink on how the market values fee-heavy players—think wealth managers and brokerages?
Morgan Stanley stands right in the middle of that debate, thanks to its business mix. The firm’s wealth and investment management arms thrive when clients feel upbeat—trading, investing, and borrowing pick up. But those same activities can drop off in a hurry when markets get choppy.
Stocks on Wall Street ended mostly lower, while Treasury yields edged down as traders stayed on the sidelines before Friday’s CPI data. “The ‘bull case’ for Fed cuts was relying on softer jobs numbers, so that argument took a hit,” said Jay Hatfield, CEO and CIO at Infrastructure Capital Advisors. 1
Late Wednesday, Morgan Stanley revealed it bumped CEO Ted Pick’s 2025 pay package to $45 million, a jump from $34 million the previous year. Of that, the bank says 75% will be deferred across three years—so Pick only collects later, provided he hits certain performance marks. The compensation committee flagged “exceptional results” in 2025 as the driving factor. 2
Shares swung between $178.82 and $165.76 on Thursday, ultimately settling $7.45 below Wednesday’s finish. Goldman Sachs dropped 3.6%, while JPMorgan Chase shed 2.5%, echoing the sharp pullback across financial stocks.
AI is starting to look like a fresh headline risk for companies leaning on advice, distribution, and pricing muscle. “You’ve clearly seen that breakdown in terms of the monolithic AI trade,” said Garrett Melson, portfolio strategist at Natixis Investment Managers Solutions. As the market picks through the field, it’s a scramble to distinguish who stands to benefit—or lose—in the AI sweepstakes. 3
The next move for Morgan Stanley and rivals may hinge on macro factors rather than internal updates. If CPI comes in above estimates, talk of “higher for longer” rates could resurface, dragging on stocks exposed to trading flows. On the other hand, a milder inflation number might calm nerves and slow the selloff.
Friday’s U.S. CPI report (Feb. 13) is the next big test for investors. Morgan Stanley traders are eyeing moves in Treasury yields, plus any knock-on effects from AI volatility in broker and wealth-management stocks.
