Morgan Stanley: As Moody's downgrades the US rating, investors can buy US stocks on dips

Odaily News Morgan Stanley strategist Michael Wilson said investors should buy into Friday’s sell-off in U.S. stocks following a U.S. credit rating downgrade as the recent truce with some countries on trade reduces the likelihood of a recession.
The strategist believes a pullback in stocks is more likely after Moody's downgraded the U.S., pushing the 10-year Treasury yield above the key 4.5% level.
However, Wilson wrote in a report: "We would be buyers of this dip." Wilson said an encouraging sign is that the corporate earnings season appears to have ended and the uncertainty of tariffs has not had a significant impact. He said that even if trade data in the coming months is slightly weaker, recent corporate profit revisions also indicate that the stock market will rise further. (Jinshi)