New York, Jan 23, 2026, 13:11 EST — Regular session
- Morgan Stanley shares slipped amid volatile moves in U.S. financial stocks.
- Bank and financial ETFs fell behind as investors grappled with policy and macroeconomic uncertainties.
- Next week’s Fed meeting and major earnings reports are shaping traders’ focus.
Morgan Stanley shares fell 2.7%, dropping $4.93 to $178.12 in early afternoon trading on Friday.
This shift is significant as banks and brokers have once again become a barometer for risk appetite, which has shown volatility throughout the week. Coming up next week are the Federal Reserve’s initial policy decision of the year and a heavy slate of earnings reports.
The SPDR S&P Bank ETF dropped roughly 3.1%, with the Financial Select Sector SPDR Fund sliding about 1.5%. Goldman Sachs declined around 3.8%, and JPMorgan Chase slipped near 2.0%.
Wall Street saw a mixed mood. The S&P 500 and Nasdaq edged up as investors returned to mega-cap tech, but Intel tumbled after a weak forecast, while geopolitical tensions capped risk appetite. “Some of these AI stocks have been inflated dramatically,” said Joe Saluzzi, partner at Themis Trading, as traders debated if earnings could back the high valuations. (Reuters)
That nervous energy spilled into Friday after stocks climbed on news President Donald Trump dialed back tariff threats related to Greenland. Gregg Abella, CEO of Investment Partners Asset Management, likened market openings to either “Christmas morning” or “Friday the 13th.” (Reuters)
Policy remains a cloud over the sector. Bank of America is looking into launching new credit cards with a 10% annual percentage rate. Citigroup is reportedly mulling a comparable step, according to a source familiar with the discussions. This comes as banks grapple with Trump’s proposal to cap credit-card interest rates at 10% for one year, Reuters reported. (Reuters)
Morgan Stanley is reportedly in the running for senior banking roles in SpaceX’s possible 2026 IPO, according to a source cited by Reuters. These discussions are still in the early stages and could shift depending on market dynamics. (Reuters)
Investors are keeping an eye on the Fed’s upcoming meeting next week. The central bank is scheduled to meet Jan. 27-28 to decide on the federal funds rate, a key benchmark for short-term borrowing costs. This rate directly impacts markets that Morgan Stanley relies on for trading and underwriting. (Federal Reserve)
That said, the opposite could happen. If the Fed signals growing unease over inflation or dials back expectations for rate cuts, financial stocks might stay under pressure. Volatile markets could stall deal activity, even as they boost volume for certain trading desks.
Morgan Stanley posted robust earnings earlier this month, surpassing profit forecasts thanks to a rebound in dealmaking. Still, CEO Ted Pick flagged geopolitical tensions and described the macro environment as “complicated.” (Reuters)
Next week’s schedule is packed, and it’s not just the Fed grabbing attention. Big tech earnings roll in, with investors parsing those forecasts as a gauge for the overall growth narrative that’s been propping up index levels. (Reuters)
Morgan Stanley’s next major event is Wednesday, Jan. 28: the Fed’s policy statement and Chair Jerome Powell’s press conference, plus any new updates from Washington on consumer-lending rules. (Federal Reserve)
