Michael Wilson, strategist at Morgan Stanley, said investors should buy into Friday's drop in US stocks triggered by the US credit rating downgrade, as the recent truce with some countries on trade has reduced the likelihood of a recession. The strategist argued that a pullback was more likely after Moody's downgrade pushed the yield on the 10-year Treasury above the key 4.5 per cent level. However, Wilson wrote in a note: We will be buyers of this decline. Wilson said an encouraging sign was that corporate earnings season appeared to be over and that tariff uncertainty had not had a significant impact. He said that even if trade data were slightly weaker in the coming months, the recent rise in corporate earnings bodes well for further gains in the stock market. (Jin Ten)