On September 15, Morgan Stanley fell 3.07% in regular trading, trading at $208.515/share, with turnover of $526 million. The decline reflects broad selling pressure across investment banks as expectations for an imminent Federal Reserve rate hike intensified.
Morgan Stanley's own strategy team had flagged that the Fed may proceed with a rate hike this week. The continued closure of the Strait of Hormuz has pushed oil prices higher, amplifying inflation risks and raising concerns that what was expected to be a measured policy adjustment could evolve into a more prolonged tightening cycle. Earlier this month, Morgan Stanley Wealth Management's chief economic strategist noted that recent CPI data left the Fed with increasingly limited room to maneuver in its fight against inflation.
The hawkish macro backdrop triggered sector-wide weakness across the Investment Banking & Brokerage space. Goldman Sachs fell 3.62%, LPL Financial Holdings dropped 3.34%, and Interactive Brokers declined 1.35%, while Robinhood edged up 1.09% and Charles Schwab was roughly flat at 0.03%.
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