Trump stirs up the storm again! Suddenly halts tariff negotiations with various countries and instead promotes a global unified tax rate (expected to be implemented within 2-3 weeks), with a 10% baseline tax rate now three times higher than at the beginning of the year. Even more shocking is Moody's late-night downgrade of the U.S. sovereign rating to Aa1, marking the complete withdrawal of the AAA rating by all three major agencies.
Historical experience shows:
• The first downgrade in 2011 triggered a more than 5% drop in U.S. stocks.
• The second downgrade in 2023 had a muted market response.
• The impact of this downgrade is still difficult to estimate.
Operational suggestions: Look to go long around the 101000 level on a pullback: or hold positions and wait, avoid weekend volatility risks, and act after the market digests the news. Remember 💣💣💣, trade short positions, not long positions.