The stock market saw a positive start on Tuesday, with major indexes like the Dow Jones Industrial Average and the S&P 500 edging higher. This was in response to hot inflation data released by the Labor Department, as investors eagerly awaited comments from Federal Reserve Chairman Jerome Powell. On the other hand, GameStop (GME) saw a significant spike in its stock price, jumping over 112% in early trading and looking to build on Monday’s gains.
The 10-year Treasury yield slightly declined to 4.46%, while oil prices experienced a dip as West Texas Intermediate futures hovered around $78.30 per barrel. Exchange-traded funds like the Invesco QQQ Trust ETF (QQQ) and the SPDR S&P 500 ETF (SPY) also registered minor gains.
GameStop shares surged early on Tuesday before paring back some of the gains, still holding strong at a 63% increase. Similarly, AMC Entertainment (AMC) also witnessed a rise of over 78% in early trading.
Keith Gill, popularly known as Roaring Kitty, made his social media comeback after three years, sparking further interest in meme stocks like GameStop and AMC. Additionally, the Biden administration announced new tariffs on Chinese imports worth $18 billion to safeguard American industries from unfair competition.
The Labor Department’s producer price index revealed a 0.5% increase in April, surpassing expectations. Fed Chair Jerome Powell’s scheduled appearance at an event in Amsterdam later in the day was eagerly awaited by investors.
Key earnings reports from companies like Alibaba (BABA), Home Depot (HD), and On Holding (ONON) were closely watched on Tuesday. Alibaba shares dipped nearly 6%, while Home Depot saw a 2% decline in its stock price. On Holding, however, surged by 15% in early trading.
Amidst the market action, stocks like NetApp, NXP Semiconductors, Taiwan Semiconductor Manufacturing, and Tradeweb Markets caught the attention of investors for potential upside moves. JPMorgan Chase and Merck were also in focus as they neared buy zones in their respective base formations.
Overall, the stock market showed a mix of gains and losses, with individual companies like American Express (AXP), Texas Roadhouse (TXRH), Chipotle (CMG), and Tradeweb Markets exhibiting strong performance in their buy zones.
Top stocks like Nvidia and Tesla featured in the Magnificent Seven list, with Nvidia witnessing a slight decline while Tesla gained 3% in early trading. Apple and Microsoft, two key Dow Jones leaders, showed mixed performance following the market open.
In conclusion, staying informed about market trends, earnings reports, and individual stock movements is crucial for making informed investment decisions during dynamic market conditions.
