Morgan Stanley's first-quarter profit rose as its traders cashed in on market volatility that boosted client activity.
The bank Friday posted a profit of $4.3 billion, or $2.60 per share, in the three months ended March 31. That compares with a profit $3.4 billion, or $2.02 per share, a year ago.
U.S. President Donald Trump's decision to impose hefty tariffs on major economies and the launch of China's generative AI model, DeepSeek, triggered a broad selloff across global markets.
The potential for a recession and the uncertainty over the Federal Reserve's interest-rate trajectory kept investors on edge.
Market volatility fuels trading as investors rush to hedge risks, rebalance portfolios and capitalize on price swings, boosting revenue for Wall Street banks.
Morgan Stanley's total revenue rose to $17.7 billion in the first quarter versus $15.1 billion, a year ago.