Wall Street Trading Enthusiasm Wanes

  • Significant market volatility returns, but it’s the bad kind
  • Morgan Stanley joins Credit Suisse in tempering expectations
Photographer: Michael Nagle/Bloomberg
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What started out as a strong quarter for Wall Street trading desks is ending on a less encouraging note.

Investment banks have signaled a more tempered view of trading activity in recent days. Last week, Morgan Stanley President Colm Kelleher said that industrywide revenues will probably be unchanged from a year earlier amid a rise in violent moves in asset prices, or gap volatility, that encourages clients to sit on the sidelines.