New York, January 24, 2026, 14:47 (EST) — Market closed.
Morgan Stanley shares dropped 2.2% on Friday, closing at $179 and underperforming the broader market ahead of the weekend.
That’s crucial now as the coming week will put risk appetite through another test. Morgan Stanley knows all too well how quickly shifts in sentiment can disrupt trading and derail dealmaking plans.
The Federal Reserve is set to meet Jan. 27-28, with a rate hold widely expected when the decision drops on Jan. 28. Roughly 20% of the S&P 500 will report earnings, including heavyweights Apple, Microsoft, Meta, and Tesla. Yung-Yu Ma, chief investment strategist at PNC Financial Services Group, called recent sessions a “short but steep roller-coaster ride.” 1
Friday’s session closed on a mixed note — the Dow dropped 0.58%, while the S&P 500 barely budged. Intel weighed on the market with a gloomy forecast, and jitters lingered over President Donald Trump’s Greenland ambitions. Jason Blackwell of Focus Partners Wealth said investors might feel “pretty good” about the economy but warned to expect more “twists and turns.” 2
Morgan Stanley’s decline was part of a broader sell-off among major banks. Goldman Sachs tumbled 3.7%, JPMorgan Chase edged down nearly 2%, and Bank of America dropped 1.4% on Friday.
SpaceX is reportedly courting four Wall Street banks for senior roles in a possible 2026 IPO, Reuters says. Morgan Stanley appears to be the front-runner, thanks to its close ties with Elon Musk. A source cautioned that discussions could shift depending on market conditions. 3
A marquee IPO mandate won’t boost revenue next quarter, but it supports the bulls’ case for investment banks: fees come back once issuance picks up. Investors, however, remember well when deal talk fizzles before any filing appears.
At Morgan Stanley’s wealth division, senior vice president Jim Lacamp told CNBC that clients shouldn’t bail amid the volatility, calling this type of market action “really hard to stick with.” The 10-year Treasury yield dipped under 4.24% on Friday, fueling ongoing debate on rates as Fed week approaches. 4
The flip side is clear. A fresh tariff dispute or a stronger Fed signal on rate cuts could swiftly shake market confidence, with bank stocks usually absorbing the initial blow.
The next big signal for Morgan Stanley won’t come from anything the bank itself says this weekend. Instead, all eyes will be on the Fed’s call on Jan. 28 and the upcoming wave of mega-cap earnings. Those reports could either settle the market or spark fresh volatility. On another front, if SpaceX shifts its IPO plans from just a shortlist to assigning formal roles, that could shake up the headlines, too.
