Dealmaking activity has been slow due to high interest rates and economic uncertainty. Morgan Stanley CEO Ted Pick sees a robust mergers and acquisitions cycle on the horizon. Investment banking has been in a slump, but signs of recovery are emerging, with M&A and IPO activity picking up.

In the early part of the year, Morgan Stanley saw a decline in completed M&A deals due to economic uncertainty caused by U.S. trade policy. Despite this, the company is optimistic about a strong M&A cycle ahead. The firm has a healthy investment banking pipeline with a growing backlog in healthcare and technology.

IPO activity is also showing signs of life, with 188 IPOs filed this year, a 30% increase from last year. Companies have raised $25.2 billion through IPOs, a 7.7% increase from last year. With the Federal Reserve cutting interest rates and more clarity on tariff policy, Morgan Stanley is well-positioned for a pickup in M&A and IPO activity.

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Read more at Yahoo Finance: 1 Green Flag for Morgan Stanley Stock Right Now