Morgan Stanley's shares increased by 5% on Wednesday following impressive first quarter results, showcasing a significant rebound in global dealmaking and record revenues in equities trading. The bank reported a 36% rise in investment banking revenue, totaling $2.12 billion, largely due to a recovery in mergers and acquisitions (M&A) advisory fees. Equities trading revenue reached a historic high of $5.15 billion, while fixed income revenue also grew by 29% to $3.36 billion. A key highlight was Morgan Stanley's involvement in the $65 billion Unilever-McCormick merger. Despite these successes, CFO Sharon Yeshaya pointed out a slowdown in initial public offerings (IPOs), comparing the current market conditions to the pause seen during the Trump administration's tariff policies. Overall, the firm reported total quarterly revenue of $20.6 billion, up from $17.7 billion a year prior, and earnings per share of $3.43, surpassing Wall Street's estimate of $3. This strong performance aligns with a broader trend among major banks, including Goldman Sachs and JPMorgan, which also saw increases in investment banking and trading revenues.