Investing.com — The rally in so-called meme stocks extended into aftermarket trading, but the U.S. in late Monday trading as investors took cover ahead of a key inflation indicator that is likely to be factored into interest rates. Stock index futures prices were little moved.
Wall Street followed suit, with U.S. futures trading sideways as inflation readings on Tuesday and Wednesday were expected to provide further clues on interest rates.
But so-called meme stocks are an exception, and soared after Keith Gill, known by the social media tag “Roaring Kitty” and the architect behind the 2021 meme stock craze, posted his first social media post in three years. . Still, their gains had little impact on the overall market.
By 19:13 ET (11:13 JST), it was down slightly to 5,243.50 points, or 0.1% to 18,282.25 points. It remained flat at 39,556.0 points.
Wall Street hardly moves even after receiving PPI and CPI data
Wall Street indexes on Monday stayed within a narrow range, focused on data.
PPI statistics are expected to be released on Tuesday, while the more closely watched CPI measure is expected to be released on Wednesday. The statistics came after inflation remained roughly flat through the first quarter, dashing hopes for the Federal Reserve to cut interest rates this year.
Signs that inflation will persist into April could further reduce expectations for rate cuts, a trend that could cause stock market losses.
A series of Fed officials have also warned in recent weeks that the central bank is in no hurry to start cutting rates and needs more confidence that inflation is moving back toward its 2% annual target.
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Monday's flat close was 5,221.42 points. It rose 0.3% to 16,388.24 points and fell 0.2% to 39,431.51 points.
GameSpot and meme stocks expand gains
Shares of so-called meme stocks AMC Entertainment Holdings Inc (NYSE:) and gamestop company (NYSE:) extended its gains into aftermarket trading after surging during trading.
Video game retailer GME rose nearly 24% after rising 74% during the session, and theater chain operator AMC also rose 24% after surging nearly 80% during the session.
The buying spread to other companies with weaker fundamentals, with retail traders rallying to boost stock prices in 2021.
BlackBerry Ltd (NYSE:) U.S. shares rose 12%, while headphone maker Koss Corporation (NASDAQ:) rose 9.2%. reddit Inc (NYSE:), the platform that fueled much of the meme stock frenzy, rose nearly 2%.
Gill, who also goes by the nicknames RoaringKitty and DeepF***ingvalue, posted a series of cryptic images and clips on social media platform X. This is my first post after nearly three years of silence. There were no posts related to GME.
Gill weighed in on meme stocks' rally in 2021 after a post on Reddit's WallStreetBets forum went viral and sparked individual buying into heavily shorted stocks, first GME and then AMC. influenced. Although this buying was temporary, it caused an exponential rise in stock prices.