Moody's has downgraded the US sovereign credit rating from AAA to Aa1, triggering turmoil in global markets and causing US stock futures to drop sharply. However, Michael Wilson, a strategist at Morgan Stanley, argues that this presents a "once-in-a-lifetime buying opportunity."

Wilson pointed out that although Moody's downgrade led to a spike in the 10-year US Treasury yield above 4.5%, concerns about a US stock market recession have been significantly reduced due to the US-China trade truce and China's halt on large-scale sales of US debt. He emphasized, "We are looking to enter the market on this pullback, as corporate earnings reports and positive trade agreements will continue to drive the market rebound."

Indeed, since credit rating agencies Fitch and S&P downgraded the US ratings earlier in 2023, Moody's was the last agency to take action. Following the news, S&P 500 futures fell by 1.2% and the Dow Jones Industrial Average also experienced a decline.

Nevertheless, both Morgan Stanley and Goldman Sachs remain optimistic about the outlook. Goldman Sachs strategist David Kostin stated that the seven major tech companies—Apple, Microsoft, Amazon, Meta, Alphabet, NVIDIA, and Tesla—are expected to lead the rebound despite recent underperformance.

Wilson added that as the US earnings season wraps up, corporate revenues have generally surpassed expectations, and uncertainty around tariffs has not impacted profits as anticipated, boosting market confidence. He is optimistic that even if subsequent trade data shows slight weakness, market sentiment is already leaning positive, and buying interest will emerge at any moment.