After Moody's downgrade of the US credit rating, Morgan Stanley strategist advises buying US stocks on dips.

Michael Wilson of Morgan Stanley stated that once Friday's credit rating downgrade triggers a sell-off, investors should buy US stocks on dips, and the trade truce between China and the US has reduced the likelihood of an economic recession. The strategist believes that after Moody's credit rating downgrade pushed the 10-year Treasury yield above the 4.5% level, there is a higher likelihood of a stock market pullback. However, Wilson wrote in the report, "We will buy on dips." After the downgrade of the US credit rating, S&P 500 index futures fell by 1.2% on Monday. Moody's stated that this downgrade was due to the continuous expansion of the US budget deficit with no sign of narrowing. This move has reignited concerns in the market about whether US assets remain attractive amid ongoing global trade uncertainty.