Most stocks are rising as Wall Street approaches recent record highs. In early trading, the S&P 500 climbed 0.4%, marking its sixth winning month out of the last seven. The Dow Jones Industrial Average increased by 34 points, and the Nasdaq composite gained 0.7%. Nvidia saw a 4% increase, while GameStop surged 64%, reminiscent of its dramatic rise three years ago. This jump followed a Reddit post from an account linked to a central figure in the 2021 surge, claiming a position of 5 million shares and options to buy more.
Wall Street started June with modest gains on Monday as investors await several key labor market reports, which could influence the Federal Reserve’s upcoming interest rate decision.
Futures for the S&P 500 were up nearly 0.3% before the opening bell, while Dow futures remained virtually unchanged.
GameStop shares soared 87% in premarket trading following speculation that Keith Gill, known as “Roaring Kitty” on social media, holds a significant number of shares. A screenshot on a Reddit forum indicated Gill may own up to 5 million shares, valued at $115.7 million as of Friday’s close, nearly doubling in value before Monday’s opening.
Boston Beer declined almost 11% premarket after Japanese beverage giant Suntory reportedly denied talks to acquire the maker of Sam Adams. This follows a 22% surge on Friday due to rumors of the deal.
With earnings season winding down, focus shifts to labor data this week. Key reports include April job openings on Tuesday, layoffs data on Thursday, and the comprehensive May jobs report on Friday.
Despite elevated interest rates aimed at curbing inflation, the labor market has shown resilience, though signs of softness have emerged. Job and wage data are crucial for the Fed’s decisions on interest rates.
The Fed’s benchmark lending rate is at a two-decade high, following rate hikes starting in March 2022 to combat pandemic-induced inflation. Despite holding rates steady at recent meetings, inflation remains above the 2% target. Investors now anticipate a single rate cut later this year, as opposed to multiple cuts.
Most economists expect the Fed to maintain current rates at its 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%, closing its sixth winning month in the last seven
Dow: +1.5%
Nasdaq: -0.1%
Stocks benefited from easing Treasury yields following an inflation reading of 2.7% last month, aligning with expectations.
Featured Image: Unsplash
