Morgan Stanley Drops 4.77% Amid Fraud Alert, Fed Rate Cut Delay

On April 3, 2025, Morgan Stanley's stock price dropped by 4.77% 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 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 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, have noted that the recent inflation trends make it difficult for the Fed to ease monetary policy quickly. They now anticipate the next rate-cutting cycle to begin in March 2026, with the target rate range set between 2.50% and 2.75%.