Morgan Stanley strategist sees buying opportunity after market dip post Moody's U.S. credit downgrade

From Yahoo Finance: 2025-05-19 15:26:00

Morgan Stanley’s top stock market strategist believes a stock market decline following Moody’s downgrade of the U.S. credit rating could create a buying opportunity for the firm. He mentioned the potential for a breakout of the 10-year yield above 4.50% leading to more rate sensitivity for equities. Treasury Secretary Bessent dismissed the downgrade as a lagging indicator for the economy. Moody’s downgraded the U.S. credit rating due to the increase in government debt and interest payment ratios. Moody’s sees the federal government’s fiscal outlook worsening with spending on entitlement programs rising and interest payments on the debt increasing.



Read more at Yahoo Finance: Morgan Stanley market strategist says downgrade dip presents buying opportunity