The stock market rally rebounded on Friday following a retreat on Thursday. Market breadth is still weak, but leading stocks, including chip stocks like Nvidia, Broadcom, and Taiwan Semiconductor, did well. Meanwhile, recent earnings winners like MercadoLibre, Roku, and Datadog may offer another buying opportunity for investors.
On Friday, Moody’s cut its U.S. sovereign outlook to negative from stable, citing high budget deficits and political polarization. This raised concerns that future governments will not tackle long-term issues. Despite the market rebound, Dow Jones futures, S&P 500 futures, and Nasdaq futures indicated a drop following Moody’s negative U.S. outlook. However, the 10-year Treasury yield climbed slightly to 4.65%.
The stock market rally finished the week with solid gains, with all major indexes moving above their October highs. The small-cap Russell 2000 tumbled, though, and there are concerns about market breadth. Tech and chip stocks have been leading the rally, and there could be more buying opportunities for investors as new leaders break out or clear buy points. Overall, this news article highlights the potential opportunities and risks in the current stock market.
