New York, Jan 22, 2026, 13:12 EST — Regular session
- Morgan Stanley shares rose roughly 1.2% in afternoon trading
- Bank stocks rally alongside a broader bounce, boosted by easing tariff concerns and new U.S. data
- Traders focus on the Fed’s Jan. 27-28 meeting and consumer credit policy updates
Morgan Stanley shares climbed 1.2%, closing at $185.51 Thursday afternoon after fluctuating between $182.29 and $186.02 earlier in the session.
The rally matched a wider Wall Street surge toward all-time highs after President Donald Trump eased off tariff threats related to a Greenland dispute, while investors absorbed fresh U.S. data. “It’s the TACO trade follow on from yesterday,” said Dustin Thackeray, head of portfolio management at Crewe Advisors, referring to traders’ nickname for “Trump Always Chickens Out.” (Reuters)
Morgan Stanley’s performance often hinges on calmer markets, where steady trading volumes and confident clients lead to more deals. A fresh sign came through the tape: SpaceX is eyeing Morgan Stanley, Bank of America, Goldman Sachs, and JPMorgan for top slots on a potential IPO. Reuters reports the offering could raise over $25 billion, depending on market conditions. (Reuters)
Goldman Sachs climbed 1.6%, JPMorgan edged up 1.2%, and Bank of America jumped 1.9%. Other major lenders showed gains too.
Macro headlines gave a boost. The Commerce Department’s Bureau of Economic Analysis updated third-quarter 2025 real GDP growth to a 4.4% annual rate. It also noted strong consumer spending increases in October and November. (Bureau of Economic Analysis)
Data will come in a week ahead of the Federal Reserve’s Jan. 27-28 policy meeting, where economists surveyed by Reuters anticipate the central bank will hold its benchmark rate steady at 3.50%-3.75%. “The economic outlook on the surface suggests the Fed should remain on hold,” said Nomura senior U.S. economist Jeremy Schwartz. (Reuters)
Traders haven’t lost sight of how fast sentiment can shift. On Tuesday, bank shares dropped as investors mulled a Trump administration deadline tied to a proposed 10% cap on credit card interest rates — a limit banks say could restrict credit availability. Reuters also reported uncertainty over whether the cap can be enforced without new legislation. (Reuters)
Morgan Stanley faces a downside risk if policy shocks—whether on tariffs, consumer credit regulations, or the Fed’s independence—trigger volatility spikes that rattle issuers and slow advisory and underwriting activity. Such shocks could quickly dent fee forecasts, even if trading desks remain stable.
Morgan Stanley has kept up its usual capital-markets housekeeping, filing prospectus supplements related to structured note offerings. Investors usually see these filings as standard procedure, not signaling any major changes. (SEC)
For the moment, buyers have returned to the banks, and Morgan Stanley is benefiting from the surge.
Next on the calendar: the Fed decision on Jan. 28. Markets are also closely tracking any clearer signals on tariffs and whether the credit-card rate cap proposal will disappear, evolve into a middle ground, or spark a serious showdown in Washington.
