New York, Jan 23, 2026, 11:12 (ET) — Regular session
- Morgan Stanley shares dropped roughly 2% as major U.S. banks pulled back amid weaker market momentum
- Attention now turns to next week’s Fed decision alongside a packed slate of corporate earnings
- SpaceX IPO chatter heats up alongside new insider-sale filings, stirring company-specific buzz
Morgan Stanley (MS) shares dropped on Friday, deepening the retreat in major U.S. banks as investors cut risk in early New York hours. The stock slipped 2.1% to $179.17, after swinging between $183.60 and $178.89.
This move is significant since Morgan Stanley often serves as a quick gauge of market sentiment: deal fees, trading volume, and wealth management earnings usually track investor confidence. When activity slows, stocks linked to capital markets tend to show the strain.
Selling pressure followed a volatile week marked by geopolitical tensions and an upcoming policy hurdle. Around 20% of the S&P 500 companies are set to report earnings next week, while the Federal Reserve is widely expected to keep rates unchanged on Wednesday amid ongoing questions about its independence, according to a Reuters analysis. “It’s been a little bit of a short but steep roller-coaster ride,” said Yung-Yu Ma, chief investment strategist at PNC Financial Services Group. Reuters
On Friday, the broader market slipped as Intel tumbled following a weak forecast, dragging down sentiment. “Guidance now is more critical than ever,” said Peter Cardillo, chief market economist at Spartan Capital Securities. Investors are also preparing for the Fed, expected to hold rates steady in the 3.5%-3.75% range next week; the CME FedWatch tool, which tracks interest-rate futures, shows traders favoring a first cut in June. Reuters
Morgan Stanley caught notice after Reuters reported that SpaceX is weighing the bank alongside Bank of America, Goldman Sachs, and JPMorgan Chase for senior roles in a potential IPO. A source familiar with the situation told Reuters that Morgan Stanley is becoming a top candidate, highlighting its close relationship with Elon Musk.
At Davos this week, CEO Ted Pick offered an upbeat take on deal activity. “I’m pretty amped up,” he told Bloomberg during the World Economic Forum, describing corporate health as “excellent.” Bloomberg
A separate regulatory filing revealed insider selling activity. On Jan. 20, Crawley Mandell, Morgan Stanley’s chief client officer, offloaded 7,860 shares across multiple transactions. After these sales, he still held roughly 68,788 shares, according to a Form 4 filing; these documents track insider trades and are submitted to the SEC.
The sector could remain pressured if volatile markets force companies to postpone mergers or equity and debt offerings, or if rate forecasts shift once more. Morgan Stanley sees volatility boosting trading, though steep declines may still hurt underwriting and cut into asset-based fees.
The Federal Reserve’s next major event is its Jan. 27-28 meeting, wrapping up with a policy statement at 2 p.m. ET on Jan. 28, followed by a press conference half an hour later.
