Meme Stocks Surge for a Second Day

Nasdaq hits all-time high
By Newser Editors and Wire Services
Posted May 14, 2024 3:39 PM CDT
Meme Stocks Surge for a Second Day
The front of the New York Stock Exchange is adorned with signs for tool maker DeWalt in honor of the 100-year anniversary of the company on Tuesday, May 14, 2024.   (AP Photo/Peter Morgan)

Stocks ended higher on Wall Street Tuesday, sending the Nasdaq composite to another record.

  • The S&P 500 rose 25.26 points, or 0.5%, to 5,246.68. , and is sitting just shy of its own all-time high.
  • The Dow Jones Industrial Average rose 126.60 points, or 0.3%, to 39,558.11.
  • The Nasdaq rose 122.94 points, or 0.8%, to 16,511.18 .
Several "meme" stocks, including GameStop and AMC Entertainment, raced higher in a reprise of the social-media driven frenzy of three years ago. GameStop jumped 60.1% and AMC rose 32%. Both stocks gave back most of their gains from even larger surges earlier in the day.

An update on inflation showed that prices remain stubbornly high at the wholesale level, before many price changes are passed along to consumers, the AP reports. The latest producer price index showed that inflation rose sharply in April. The report also included a revision lower for the March reading. The report is the first of two big inflation updates this week that are being closely watched by Wall Street. "Inflation pressures in the US economy are still substantial and the momentum that built up over the last few years is still rolling along," says Bill Adams, chief economist for Comerica Bank.

The bigger test for markets comes Wednesday, when the US releases its monthly update on consumer prices, or inflation faced by households. Economists expect the consumer price index to ease to 3.4% in April on a year-over-year basis. The rate of inflation has been ticking higher in 2024, raising concerns that the Fed could have a hard time taming inflation to the central bank's goal of 2%.

(More stock market stories.)

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