US Stock Market Move | Morgan Stanley's (MS.US) stock rose over 5%, with a 25% increase in Q1 stock trading revenue far exceeding expectations.

On Wednesday, Morgan Stanley (MS.US) rose more than 5%, reaching $193.47. Morgan Stanley released its financial report for the first quarter of the fiscal year ending March 31, 2026: net revenue of $20.6 billion, a 16% year-over-year increase; net income attributable to shareholders of $5.57 billion, a 29% year-over-year increase; diluted EPS of $3.43, compared to $2.60 in the same period last year. The company described this quarter as a "record quarter" with pre-tax profits reaching a record high of $7.01 billion. By segment, Institutional Securities achieved a record net revenue of $10.7 billion, with strong market activity in trading and strong performance in both equities and fixed income under increased volatility. Investment Banking saw a 36% year-over-year growth, with M&A advisory being the main driver of growth. Wealth Management also reached a historical high net revenue of $8.5 billion, with net new assets of $118 billion and strong inflows in fee-based assets, maintaining a pre-tax profit margin above 30%. Following the footsteps of its Wall Street peers, Morgan Stanley's trading revenue increased by 25%, reaching a record $5.15 billion, exceeding expectations by approximately $450 million. CFO Sharon Yeshaya noted that market volatility provided the bank with opportunities to showcase its advisory value.