Morgan Stanley's Modest Gains Overshadowed by 179th Trading Volume Rank

On August 18, 2025, Morgan Stanley (MS) rose 0.10%, with a trading volume of $510 million, marking a 29.36% decline from the previous day’s volume. The stock ranked 179th in terms of trading activity across the market.

Morgan Stanley analysts downgraded Caterpillar Inc. (CAT) to Underweight, citing eroded profitability and growing downside risks despite a 50% rally in its shares since April. The firm highlighted concerns over the construction equipment maker’s exposure to trade policy uncertainties and margin compression.

Equity analysts at Morgan Stanley also warned of potential disruptions from President Trump’s proposed 100% tariffs on semiconductor imports under Section 232. The firm emphasized heightened uncertainty for U.S. and global chipmakers, which could ripple through broader markets.

In a separate move, Morgan Stanley cut its rating on Coca-Cola Europacific Partners (CCEP) to Equal-weight from Overweight, noting a balanced risk-reward profile after the stock’s strong performance over the past year. The firm cited reduced catalysts for further gains in the beverage bottler’s valuation.

The strategy of buying the top 500 stocks by daily trading volume and holding them for one day yielded a total profit of $2,340 from 2022 to the present. This generated a cumulative return of 23.4% relative to the initial investment, reflecting modest gains amid market volatility and a conservative approach.