• Morgan Stanley experienced its most substantial stock price drop since June 2020, primarily due to a significant decline in fees collected by the firm's dealmakers on Wall Street and dwindling inflows within its wealth management division. The revenue generated from investment banking saw a sharp 27% decline, and the fixed-income trading segment struggled, resulting in a decrease in overall profitability.

• The firm's wealth management division fell short of analyst expectations, posting revenues of $6.4 billion, with net new assets totaling $35.7 billion, marking the lowest level in more than three years. Morgan Stanley's stock price tumbled by as much as 7.9% during New York trading, indicating the most substantial post-earnings decline in at least a decade. This drop exceeded the 5.5% decline recorded in shares up to that point in the current year. The wealth management slowdown followed ambitious targets set by Morgan Stanley for a business that had thrived following the acquisition of ETrade. Furthermore, the bank's net interest income in the quarter, amounting to $2 billion, reached its lowest point in over two years as affluent clients sought higher yields for their deposits.