GameStop and AMC shares plummet after rally, Boeing shares also drop

From CNBC: 2024-05-15 16:46:00

Shares of GameStop and AMC Entertainment fell significantly after a two-day rally, with GameStop declining about 30% and AMC dropping 20%. This retreat marked a significant pullback after both stocks had seen impressive gains earlier in the week. Meanwhile, Boeing shares slipped 1.7% midday Wednesday.

During Wednesday’s trading session, 65 stocks in the S&P 500 hit new 52-week highs, including companies such as Kinder Morgan and others. Albemarle, a lithium giant, was in danger of posting its second bearish “outside day” in a week, with shares falling and on pace for its worst day since April 12, 2024.

Consumer discretionary stocks in the S&P 500 lagged during Wednesday’s trading, with Hasbro leading the sector lower with a slide of more than 3%. However, D.R. Horton was the best performer in the sector, offsetting some of the losses with a rally of over 5%.

BlackRock’s chief investment and portfolio strategist, Americas, Gargi Chaudhuri, believes that higher-for-longer interest rates are the necessary monetary policy stance for the Federal Reserve given the inflation data. The April inflation print, while below expectations, supports the continued higher interest rates to combat inflation.

The S&P 500, Nasdaq Composite, and Dow Jones Industrial Average all notched new record closing highs Wednesday, with the S&P 500 rising 1.17%, Nasdaq gaining 1.40%, and the Dow increasing 0.88%. Alphabet is the best-performing stock in the “Magnificent Seven” so far in the second quarter, up about 14.15%, beating out competitors like Apple and Nvidia.



Read more at CNBC: Stock market news for May 15, 2024