US stock markets largely shrugged off reports of higher-than-expected whole sale prices to make modest gains on Tuesday. PPI figures revealed an increase of 0.5% month-on-month compared to consensus of just 0.3%, however markets seem to be more interested in the more prominent CPI figures set to be published later today. Fed Chair Jerome Powell didn’t seem too bothered by the data either, stating that PPI was more mixed than hot, then going on to say that the next move for the Federal Reserve is unlikely to be a rate hike. Powell is set to speak again on Monday and will no doubt be influenced by the imminent publication of CPI data.
The Dow Jones Industrial Average reversed Monday’s decline with a 0.32% gain yesterday, the S&P 500 climbed half a percent, whereas the Nasdaq Composite added 0.75% to reach a new record high of 16,511 points. So-called “meme stock” GameStop (GME) more than doubled yesterday before settling lower, in a move reminiscent of the infamous short squeeze back in early 2021. The stock was priced at just $10 a mere two weeks ago; it closed yesterday’s session at $48.75. Another meme stock, AMC Entertainment Holdings (AMC), was also in the spotlight, surging from $2.91 on Friday all the way up to $11.88 during intra-day trading on Tuesday.
Hard to say exactly what the resurgence of such a phenomenon entails, but it is certainly worth keeping an eye on. The last time such price action occurred happened concurrently with rapid appreciation in the crypto markets.
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