Morgan Stanley Drops 4.96% Amid Fraud Alert, Rate Cut Delay

On April 3, 2025, Morgan Stanley's stock price dropped by 4.96% in pre-market trading.

Morgan Stanley has issued a public notice warning investors to be cautious of fraudulent activities conducted by individuals impersonating the company or its employees. These scammers use various tactics, such as offering investment seminars or refunds for online courses, to lure investors into downloading fake apps and transferring money. The company emphasizes that it does not have an official mobile app and has not authorized any third parties to conduct such activities. Investors are advised to verify any suspicious activities through the company's official channels and to report any fraudulent incidents to local authorities.

Morgan Stanley has revised its expectations for the Federal Reserve's interest rate cuts, pushing back the timeline to March 2026. The decision is based on concerns over inflation risks stemming from tariffs. The firm's economists, including Michael Gapen, now predict that the next rate-cutting cycle will begin in March 2026, with the federal funds rate ultimately reaching 2.50-2.75%. They believe that the Fed will be reluctant to ease policy quickly in the face of rising inflation.