US Stock Futures Steady, Eyes on Inflation; Meme Stocks Surge

By Daniel M.

May 14, 2024   •   Fact checked by Dumb Little Man

U.S. stock index futures moved slightly in Monday evening trading as traders prepared for critical inflation data due later this week, which might affect the Federal Reserve’s interest rate decision. 

Meanwhile, meme stocks rose significantly following a big social media update by Keith Gill, often known as Roaring Kitty. S&P 500 futures fell marginally to 5,243.50 points, while Nasdaq 100 futures fell 0.1% to 18,282.25 points. 

Dow Jones futures were steady at 39,556.0 points. This sideways trend illustrates investors’ cautious stance, which involves attentively monitoring future economic indications.

Anticipation of Inflation Data

Wall Street is still focused on the impending Producer Price Index (PPI) and Consumer Price Index (CPI) data releases, which are slated for Tuesday and Wednesday, respectively. 

These indices are important because they provide insight into inflation tendencies, which is necessary for anticipating the Federal Reserve’s monetary policy

According to recent statements from Fed officials, the central bank is not yet ready to lower interest rates since inflation has not moved decisively near the Fed’s 2% target.

Meme Stocks Surge

In an unexpected turn of events, meme stocks such as AMC Entertainment and GameStop experienced significant jumps in aftermarket trading, propelled by Keith Gill’s recent social media activity, his first in three years. 

GameStop shares rose 24% following a 74% session gain, while AMC shares rose 24% after an 80% session surge. This spike also impacted other firms, such as BlackBerry and Koss Corporation, which saw their shares rise by 12% and 9.2%, respectively.

Influence of Social Media on Trading

Keith Gill‘s influence remains strong in the meme stock community, as seen by the dramatic fluctuations in these stocks in response to his posts. 

Despite the fact that his social media messages do not specifically reference any specific stocks, his very presence and previous acts have sparked enormous trading activity.

Economic Indicators and Fed’s Stance

This week is jam-packed with economic data releases that could influence Fed policy, including retail sales figures.

Investors are closely monitoring these statistics to assess the likelihood of a rate cut, which has been the subject of much discussion due to continuously high inflation rates. 

Currently, the market expects a 48% possibility of a rate cut by September, depending on next economic reports.

Final Thoughts

As traders negotiate a critical week of potentially market-moving data, the interaction between inflation indicators and Fed policy will be critical. 

The surprise rally in meme stocks demonstrates social media’s continued influence on stock prices, particularly for companies popular with retail investors. 

Looking ahead, the market reaction to the CPI and PPI statistics will provide vital insights into the probable trajectory of US monetary policy and the broader financial landscape.

Daniel M.

Daniel Moore is a seasoned trading analyst with over 20 years of experience navigating the ever-evolving financial landscape. Renowned for his unconventional yet effective approach, Daniel utilizes a blend of technical and fundamental analysis to identify hidden gems and craft winning trade strategies. He is a master at demystifying complex market data and translating it into actionable insights for traders of all experience levels.

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