US stocks closed mixed on Monday as a meme stock rally reignited, with investors eagerly awaiting an upcoming inflation report that could signal potential interest rate cuts. The S&P 500 closed just below the flatline, while the Nasdaq Composite moved up about 0.2%. The Dow Jones Industrial Average snapped its eight-day winning streak, closing down 0.2%.
The markets were dominated by a meme stock rally, with GameStop shares jumping 74% and AMC shares gaining nearly 80%. The gains came as social media star “Roaring Kitty” returned from a three-year break, credited with kick-starting the 2021 meme stock frenzy.
Stocks have been on a strong run in May, fueled by better-than-expected earnings and optimism for a Federal Reserve easing in monetary policy. However, recent hot inflation data has made investors more cautious, with the upcoming Consumer Price Index update on Wednesday expected to provide further insight into inflation trends.
Overall, the markets are in wait-and-see mode, with attention focused on economic releases this week as potential catalysts. The meme stock rally and upcoming inflation report are key factors driving market sentiment as investors navigate the current economic landscape.
