On Tuesday, a slew of US stock indices had struggled for directions amid a sheer lack of market impetus and wrapped up the session mostly dithered, however, a retail buying frenzy currently at its third straight week in a row had soared the so-called ‘meme stocks’, helping Nasdaq to wind up the day with a decent gain.
In point of fact, in the day’s Wall Street had remained largely range-bound with mega-cap tech conglomerates such as Amazon.com Inc alongside Apple proffering the largest boost in Nasdaq, while a ‘Reddit stock discussion group’-led retail buying frenzy had continued to gather momentum with Clover Health Investment snatching up the biggest percentage gain in tech-heavy Nasdaq.
If truth is to be told, market participants seemed to be biding their time ahead of a crucial Thursday CPI (Consumer Prices Index) data that would offer an indication about the course of US inflation alongside the US Fed’s approach to live with a higher inflation.
Aside from that, the US Labour Department's monthly JOLTS report released earlier in the day, had shown that US Job openings spiked to a record in April and layoffs fell to a record low, however, an upbeat April JOLTS report was largely countered by a persistent restrain in supply.
Wall St. closes little changed as ‘meme stocks’ extend gains
Citing statistics, in the day’s Wall Street closing bell, trade-sensitive Dow dwindled 0.09 per cent to 34,598.57 and benchmark S&P 500 added 0.02 per cent to 4,227.23, while tech-heavy Nasdaq reported a decent gain of 0.31 per cent to 13,924.31.
Meanwhile, referring to a growing investors’ caution ahead of Thursday’s inflation data, a portfolio manager at Kingsview Asset Management in Chicago, Paul Nolte said, “We're waiting for inflation numbers, waiting for more from the (Federal Reserve), waiting for earnings season.
We're in this twilight zone until probably right after the Fourth of July, when we see earnings season kick in…(Meme stocks) are where the action is, but you flip it over and look crypto and that's a mess”.