Stocks opened higher on Monday, with the S&P 500, Nasdaq Composite, and Dow Jones Industrial Average all posting gains as investors eagerly awaited the upcoming inflation report. The S&P 500 rose roughly 0.2%, the Nasdaq Composite moved up about 0.3%, and the Dow Jones Industrial Average added 0.3%, eyeing a ninth straight daily win.
The recent strong performance of stocks in May has been attributed to better-than-expected earnings and renewed optimism for a Federal Reserve easing in monetary policy. The Dow’s eight straight daily wins last week were a testament to this positive trend, although a lack of economic releases may have played a role in the market’s performance.
Investors have been closely monitoring inflation data, with concerns about the potential impact on interest rates. The upcoming Consumer Price Index update on Wednesday will provide insight into whether inflation is remaining high into the second quarter, with some on Wall Street speculating that the report could pave the way for multiple rate cuts this year.
In individual stock movements, GameStop shares surged about 45% as meme stocks gained attention once again. The return of “Roaring Kitty,” a social media star credited with sparking the 2021 meme stock frenzy, added to the excitement surrounding GameStop.
Looking ahead, investors will be keeping a close eye on quarterly results from Home Depot and Walmart, as well as the annual Upfront presentation by Netflix. Analysts are optimistic about the potential for positive updates from these companies, which could serve as catalysts for further stock movements.
Overall, the market remains cautiously optimistic as it navigates through economic uncertainties and potential policy changes. With a flood of economic releases expected this week, including the crucial CPI update, investors are bracing for potential market-moving developments in the days ahead.
