Morgan Stanley CEO Ted Pick expressed strong optimism Tuesday, forecasting a robust end to the quarter following an earlier slowdown in deals.
Speaking at his bank’s annual financial conference, Pick said U.S. tariff volatility in April caused a pause in deal activity.
“We had maximum tariff volatility through the first half of the quarter,” he said. “Deals were paused through April and part of May.”
Recent weeks have brought renewed momentum. “Dealmaking and the calendar for equity capital markets are picking up,” Pick told attendees.
He added, “I’m super pumped up about the businesses,” pointing to increased activity and resilience in deal discussions across sectors.
Morgan Stanley has served as lead underwriter for several high-profile initial public offerings in recent weeks.
That includes Chime, the fintech firm expected to raise up to $832 million when its IPO closes this week.
In May, the bank also led listings for Hinge Health, which raised $437.3 million, and ad tech company MNTN, which raised $187.2 million.
On the mergers and acquisitions front, Morgan Stanley advised financial group TJC on its $5 billion sale of Silvus Technologies to Motorola.
The firm also advised AT&T on its $5.75 billion acquisition of Lumen Technologies’ consumer fiber business.
Pick highlighted the bank’s advisory role for Toyota’s special board committee as it considers a proposal to take the company private.
He said regulatory change would benefit banks and flagged potential implications for future acquisitions.
Pick said if the rules governing the supplementary leverage ratio, or SLR, shift, Morgan Stanley could consider acquisition opportunities.
He remains upbeat despite global market uncertainty. In April, Pick stated he was “cautiously optimistic that we won’t go into recession.”
That came after Morgan Stanley reported record equity trading revenue in the first quarter, with a 45% year-over-year increase.
Pick took over as CEO 18 months ago and became board chairman last month, succeeding longtime leader James Gorman.
Gorman reshaped Morgan Stanley into a major force in wealth management, making earnings more consistent and boosting overall profitability.
Despite recent success, Morgan Stanley cut about 2,000 jobs globally in March to manage costs and prepare for economic uncertainty.
The move aligned with broader job cuts across Wall Street, as firms braced for a potential downturn in global markets.
Still, Pick’s comments suggest the bank now sees stronger growth ahead, led by active deal flow and stable capital markets.