Wall Street Gains Ground with Nvidia and GameStop Soaring

Wall Street

The market is rising as it approaches its recent record highs. At the start of the day, the S&P 500 was up 0.4%, accounting for its sixth month of gains out of the previous seven. The Dow Jones Industrial Average moved up by 34 points, while the Nasdaq composite rose 0.7%. Nvidia saw a 4% increase, while GameStop jumped 64%, reflecting its sudden rise three years ago. This increase was driven by a Reddit post from an account connected to a major player in the 2021 surge, stating a position of 5 million shares and options to buy more.

Wall Street is beginning June with small gains on Monday as investors are looking ahead to various key labor market reports, which could greatly influence the upcoming interest rate decision planned by the Federal Reserve.

Futures for the S&P 500 rose close to 0.3% before the opening bell, while the future of the Dow stayed almost unchanged.

GameStop shares went up 87% in premarket trading following speculation that Keith Gill, who is known as “Roaring Kitty” on social media, has a considerable number of shares. A screenshot appearing in a forum on Reddit suggests that Gill may hold up to 5 million shares, worth $115.7 million as of Friday’s closing, which is nearly double the value before the start of trading on Monday.

Boston Beer declined by almost 11% in the premarket after Japanese beverage giant Suntory denied talks to acquire the maker of Sam Adams, following a 22% jump on Friday over rumors of the deal.

The focus will move towards labor data this week, as the earnings season is coming to a close. Key reports include job openings data for April on Tuesday, layoffs data on Thursday, and the comprehensive jobs report for May on Friday.

Despite the interest rates being raised to manage inflation, the labor market has remained enduring, even with the emergence of some signs of weakness. Data on jobs and wages is crucial for the Federal Reserve in making decisions regarding interest rates.

The Fed’s benchmark lending rate is at its highest point in two decades, which is a result of the rate hikes that began in March 2022 to fight the inflation caused by the pandemic. Although rates have been kept stable during the recent meetings, inflation still sits above the 2% target. Anticipations among investors have now shifted towards a single interest rate cut to be implemented later this year, instead of multiple cuts.

Most economists expect that the Federal Reserve will maintain the current rates in their next meeting this month.

Midday European Markets:

Germany’s DAX: +0.8%

France’s CAC 40: +0.4%

Britain’s FTSE 100: +0.2%

Asian Markets:

India’s Sensex: +3.2%, after exit polls predicted Prime Minister Narendra Modi’s third term.

Hong Kong’s Hang Seng: +1.8%

Shanghai Composite: -0.3%

Tokyo’s Nikkei 225: +1.1%

Seoul’s Kospi: +2%

Australia’s S&P/ASX 200: +0.8%

Taiwan’s Taiex: +1.8%

Commodities and Currency:

U.S. benchmark crude oil: +13 cents to $77.12 per barrel

Brent crude: +14 cents to $81.25 after OPEC maintained production cuts

U.S. dollar: fell to 156.81 Japanese yen from 157.26 yen

Euro: slightly up to $1.0849 from $1.0848

Friday’s Market Recap:

S&P 500: +0.8%, marking its sixth winning month within the last seven

Dow: +1.5%

Nasdaq: -0.1%

Stocks benefited from the easing of Treasury yields following an inflation reading of 2.7% in the previous month, which was in line with expectations.

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