Morgan Stanley Drops 4.75% Amid Fraud Warnings, Rate Cut Delay

On April 3, 2025, Morgan Stanley's stock experienced a significant drop of 4.75% in pre-market trading, reflecting investor concerns and market volatility.

Morgan Stanley has issued a public notice warning investors about fraudulent activities involving individuals impersonating the company and its employees. These scammers use various tactics, such as offering investment opportunities or refunds for online courses, to lure investors into downloading fake apps and transferring funds. The company has emphasized that it does not have an official mobile app and has not authorized any third parties to conduct such activities. Investors are advised to be cautious and verify any suspicious communications directly with the company's official customer service hotline.

Morgan Stanley has revised its expectations for the Federal Reserve's interest rate cuts, pushing back the anticipated timing to March 2026. This decision is based on the potential inflationary pressures from tariffs, which could make it difficult for the Fed to ease monetary policy in the near term. The firm now expects the next rate-cutting cycle to begin in March 2026, with the federal funds rate ultimately reaching 2.50-2.75%.