Stocks rose as meme traders returned briefly and inflation worries eased, leading to all-time highs.

From Morning Brew: 2024-05-20 19:16:05

The S&P 500 ended its fourth week in a row with gains, as meme traders briefly returned and inflation worries eased, leading to the best week of gains since February. All three major indexes hit all-time highs after the CPI showed inflation cooling, hinting at possible future rate cuts by the Fed.

The Dow briefly broke the 40,000 level for the first time ever, while the S&P 500 and Nasdaq also reached new heights this week, with semiconductor stocks seeing significant gains. Roaring Kitty led a short-lived revival of the meme stock frenzy, as AMC and GameStop’s gains deflated by week’s end.

Strong corporate earnings, like Walmart’s better-than-expected figures, boosted the market, signaling potential recovery in consumer demand amid economic uncertainties. A deal between OpenAI and Reddit provided media companies with revenue opportunities through AI content licensing, offering a financial boost to sustain traditional and social media platforms.

Eyes are on Nvidia as the AI chipmaker prepares to report its earnings, with shares up 96% this year alone. Investors await updates on its performance in the ever-evolving tech landscape.



Read more at Morning Brew: Meme stocks, CPI, and all-time highs: this week in markets