IXIC: Nasdaq Composite Logs Fresh Record Close as Meme Stocks Stage Mega Rally

GameStop and AMC were all the game in stock town Tuesday. It was a bad day to be a supporter of efficient markets and fair prices.

• The Nasdaq Composite IXIC hit a fresh record closing high of 16,511.18 — its seventh for the year — after tech stocks marched higher and investors celebrated a mixed bag of economic news. The producer price index rose above forecast, but it was revised to the downside for March. With that, tech stocks did well, but meme stocks did even better. Tuesday was all about the “meme stocks are so back” narrative with two standout players stealing the show.
• GameStop GME and AMC AMC skyrocketed 60% and 32%, extending gains of 75% and 78%, respectively, from the previous day. It got frothy over at the meme stock corner after Roaring Kitty, the retail investor who spotted GameStop back during Covid, posted online for the first time since the wild days of 2021. Turns out, markets are not exactly efficient and a meme post could send billions of dollars sloshing around.
• Anyhow, markets are now looking to the latest on inflation. The US consumer price index (CPI) for April will be released today. Analysts are eyeballing a tiny step back to 3.4%, down from 3.5% in March. Factoring investors’ elevated optimism over upcoming interest rate cuts, a hot printout may send shockwaves across global markets, resulting in fresh volatility.