1201 ET - Morgan Stanley's third quarter got off to a strong start, CEO Ted Pick says on a call with analysts. Momentum carried over from the second quarter, as markets remained focused on artificial-intelligence investments and continued economic expansion. Sentiment began to turn, though, as Labor Day approached. "We observed the headwinds of renewed tensions in the Middle East and higher interest rates globally as central banks moved to keep inflation at bay," Pick says. "Market volumes were slower across asset classes, as investors and institutional actors gauged risk-reward into the fourth quarter and year end."