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Stock market today: Nasdaq leads stocks higher while GameStop skyrockets
The tech-heavy Nasdaq Composite (^IXIC) and benchmark S&P 500 (^GSPC) rose on Monday, with US stocks eyeing an upbeat start to June as hopes for rate cuts revive and the meme-stock mania roars back.
The Nasdaq and S&P rose about 0.8% and 0.4%, respectively, as Nvidia (NVDA) shares popped on the heels of an AI chip update. The Dow Jones Industrial Average (^DJI) hovered around the flatline.
A surge in GameStop (GME) shares grabbed the spotlight, firing up speculation again of a return to a 2021-style meme rally. The stock skyrocketed over 100% at one point in early trading after a Reddit post apparently by Keith Gill — AKA “Roaring Kitty” — showed a big bet by the influential trader. Fellow meme darling AMC’s (AMC) shares shot up as much as 27% alongside the move.
Shares of GME, which were briefly halted for volatility, pared gains to about 50% shortly after the opening bell.
Overall, stocks are on track to build on their strong performance in May, which saw all three major gauges break records during the month. The mood has turned more positive after PCE data gave hope that inflation has turned a corner, prompting optimism that the Federal Reserve will look more kindly on a cut to borrowing costs.
Read more: How does the labor market affect inflation?
Given that, the May jobs report and other labor prints later this week will test investor sentiment on the Fed’s path. Traders have stepped up bets on a Fed cut in September compared with a week ago, per the CME FedWatch tool.
Meanwhile, gains for Nvidia at a comeback for the AI enthusiasm that has lifted techs. Shares rose about 4% shortly after the open after the chipmaker unveiled a new AI platform and promised to accelerate the pace of model upgrades. Rival AMD’s (AMD) stock also tipped higher alongside the release of its own new AI line-up and development plans.
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