Stocks demonstrated strength on Wednesday as the major indexes continued to climb higher, benefiting from mild April inflation data. Homebuilder stocks saw positive movement, particularly after an analyst raised the price target of Toll Brothers (TOL). On the other hand, meme stocks like GameStop (GME) and AMC Entertainment (AMC) saw a decline after recent gains.
The Dow Jones Industrial Average rose by 0.6% on Wednesday, with the S&P 500 and Nasdaq posting gains of 0.8% and 1%, respectively. The small-cap Russell 2000 also increased by 1%.
During Wednesday’s trading session, the Nasdaq surpassed its all-time intraday high from March 22. Moreover, the Invesco QQQ Trust (QQQ) and Innovator IBD 50 ETF (FFTY) both experienced gains in the stock market.
In terms of economic news, the Labor Department reported that April’s consumer price index met expectations, showing a monthly increase of 0.3% and an annual increase of 3.4%. Additionally, April retail sales were flat compared to projected gains. The May Empire State manufacturing index also revealed worsening business conditions in New York state.
Homebuilder stocks rallied after Wells Fargo raised the price target of Toll Brothers. Companies like KB Home and PulteGroup also saw positive movement in the stock market. Additionally, Nextracker surged after exceeding earnings and revenue estimates.
On the other hand, meme stocks like GameStop and AMC Entertainment saw declines after recent gains. AMC announced plans to issue shares of common stock in exchange for bonds. Meanwhile, Fintech stock Monday.com experienced substantial growth following positive quarterly results.
Nu Holdings and MakeMyTrip also demonstrated positive movement after reporting strong sales and earnings. Dell Technologies surged after receiving an increased price target from Morgan Stanley.
Overall, the stock market showed a mix of positive and negative movements across different sectors.
