NEW YORK, February 2, 2026, 16:37 EST — After-hours
Morgan Stanley shares climbed 1.3% to close at $185.16 on Monday on the New York Stock Exchange, then ticked up another 0.2% in after-hours trading to $185.52, according to MarketBeat. After-hours activity occurs outside the standard 9:30 a.m. to 4:00 p.m. Eastern session. (MarketBeat)
The stock’s late surge reflects investors wrestling with a jumble of factors: stronger economic data, changing rate expectations, and new uncertainties out of Washington. Morgan Stanley notes that shifts in risk appetite tend to hit trading volumes, deal flow, and fee-based wealth management fast.
U.S. stocks finished higher, led by a rebound in chipmakers and small caps. The S&P 500 rose 0.54%, while the Dow climbed 1.06%. Tim Ghriskey of Ingalls & Snyder pointed to solid fundamentals and strong earnings as key drivers. (Reuters)
Big-bank peers followed suit. JPMorgan Chase & Co climbed roughly 0.7% in late trading, Goldman Sachs Group Inc advanced about 1.1%, and Bank of America Corp rose close to 1.5%.
Manufacturing data showed signs of life after the holidays. The Institute for Supply Management reported its manufacturing PMI climbed to 52.6 in January, up from 47.9, with new orders surging to 57.1. Readings above 50 indicate growth. Still, Mark Streiber of FHN Financial noted, “Tariffs and further tariff threats are still freezing small businesses.” (Reuters)
A separate Federal Reserve survey, the Senior Loan Officer Opinion Survey, revealed banks anticipate stronger demand for business loans in 2026. Large and mid-sized companies showed the highest appetite for credit since mid-2022. Some lenders noted a greater willingness to lend to firms heavily involved in artificial intelligence, even as they brace for more missed payments on small-business and auto loans. (Reuters)
Company-specific news was sparse on Monday. Morgan Stanley’s most recent major update arrived in mid-January, with the bank beating profit estimates thanks to a boost in investment banking and trading. CEO Ted Pick noted the firm had excess capital but planned to be “patient” regarding acquisitions. (Reuters)
The rate environment remains the key risk. Donald Trump has put forward Kevin Warsh to lead the Fed, sparking renewed scrutiny over plans to shrink the central bank’s bond holdings. Joe Abate at SMBC Capital Markets dismissed a significant cut as “a nonstarter,” noting banks “want this level of reserves.” Raphael Bostic called Warsh’s challenge “tall” when it comes to convincing fellow policymakers. Jerome Powell’s term as Chair wraps up in mid-May. (Reuters)
Attention now turns to Washington and a packed week for earnings. The U.S. Bureau of Labor Statistics announced the January jobs report won’t drop Friday due to the partial government shutdown. Mike Johnson expects a swift resolution, with lawmakers aiming for a final House vote Tuesday, Feb. 3. “The release will be rescheduled upon the resumption of government funding,” said Emily Liddel. On the earnings front, Alphabet Inc is set to report Wednesday, Feb. 4, followed by Amazon.com Inc on Thursday, Feb. 5 — results that could shift the risk sentiment often spilling over to bank stocks. (Reuters)
