Stocks Retreat as Bulls Lose Momentum and Moody's Cuts U.S. Outlook

The stock market rally rebounded on Friday, with major indexes surpassing October highs. Chip stocks, including Nvidia, Broadcom, Taiwan Semiconductor, KLA, and Lam Research, showed strong performance and signaled buy opportunities. Additionally, recent earnings winners such as MercadoLibre, Roku, and Datadog may offer another chance for investors to buy. Moody's cut its U.S. sovereign outlook to negative, citing high budget deficits and political polarization. Despite concerns about market breadth, market leadership remains strong, particularly in the tech sector. Investors should be prepared for potential breakouts and take advantage of buying opportunities.