U.S. stocks were little changed Friday afternoon as Wall Street trudged toward a bullish milestone while investors mulled over the possibility of a rate cut.
The Dow Jones Industrial Average (^DJI) remained solid after reaching the important $40,000 level for the first time in Thursday trading. The S&P 500 (^GSPC) was just above the flatline, and the tech-heavy Nasdaq Composite Index (^IXIC) slipped just below it, but all indicators were on track for a weekly win. .
Stocks rose sharply following comments from Federal Reserve officials warning that interest rates are likely to remain at historic highs for some time. That dampened enthusiasm for a potential rate cut in September, which had been heightened by strong inflation data.
read more: How does the labor market affect inflation?
A light business and corporate calendar on Friday leaves little springboard for the Dow to cross a key milestone, while the S&P 500 and Nasdaq keep new records of their own within reach. .
This will draw attention to the speeches of Fed officials. Federal Reserve President Michelle Bowman reiterated her view on Friday in a speech in Nashville, Tennessee, that the central bank has not made progress in curbing inflation this year. Bowman said he was prepared to raise rates again at a future meeting if future economic data showed further weakness.
Federal Reserve Chairman Jerome Powell was scheduled to speak at Georgetown University Law School’s commencement ceremony this Sunday, but after testing positive for COVID-19, he will speak via pre-recorded video. A central bank spokesperson made the announcement on Friday.
Among individual stocks, Reddit (RDDT) stock rose 13%, not far from its all-time high closing price of $65.11 in March. The social media platform has a partnership with OpenAI that will see ChatGPT integrate the forum’s content.
Meanwhile, GameStop (GME) stock fell more than 25% after the gaming retailer said it expects first-quarter sales to decline as shoppers shift to online retailers. Meme stocks soared earlier in the week in the aftermath of the 2021 frenzy, but the rally has turned lower in recent days.
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Federal Reserve Chairman Jay Powell tests positive for coronavirus infection
Federal Reserve Chairman Jerome Powell has tested positive for the coronavirus, a central bank spokesperson said on Friday.
A spokesperson said Mr Powell was diagnosed on Friday and said he had tested positive “late yesterday” and was exhibiting symptoms.
The Fed noted that Powell will no longer attend the Georgetown University School of Law commencement ceremony, which he was scheduled to address in person this Sunday. Instead, do it through pre-recorded videos.
“In accordance with guidance from the Centers for Disease Control and Prevention, he is working from home away from others,” the Fed said in a statement. Powell previously tested positive for the virus in 2023.
Federal Reserve Chairman Jerome Powell leaves the meeting of the Financial Stability Oversight Council at the Treasury Department on May 10, 2024 in Washington, DC. (Photo provided by Kent Nishimura/Getty Images) (Kent Nishimura, via Getty Images) -
GameStop stock plummets ahead of stock issuance
Minimeme stock price rise in 2024 is losing momentum
GameStop stock (GME) rose to 30% on Friday after the company filed for a new sale of 45 million shares of its common stock and released preliminary financial results showing sales were down sharply from the year-ago period. % decline, reported Josh Schaefer of Yahoo Finance.
The video game retailer said it expects first-quarter sales to be in the range of $872 million to $892 million, down from $1.24 billion in the year-ago period. Wall Street had expected sales of just over $1 billion for the quarter, according to Bloomberg data.
Following Friday’s decline, the stock is now below its Monday morning opening price after Keith Gill, also known as “Roaring Kitty,” reappeared on X (formerly Twitter) over the weekend. Gill’s bullish case against GameStop ignited a rally in meme stocks. In 2021, the stock had more than doubled by Tuesday morning.
“I don’t see anything in the pre-announcement that indicates business is picking up,” Wedbush managing director Michael Pachter told Yahoo Finance. “But even if we actually keep failing and trying to find new strategies, we’ll still be able to raise enough money to survive for at least three or four more years.”
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Reddit stock soars pre-market on deal with OpenAI
Reddit stock (RDDT) is up 14% pre-market on a new deal with OpenAI that gives OpenAI access to Reddit’s data to help build models.
The deal comes as no surprise to Reddit investors. The company recently signed a similar deal with Alphabet (GOOGL). Reddit co-founder and CEO Steve Huffman told me last week that there could be more deals like this as part of reinventing the platform.
A new user interface is expected to arrive later this year.
See below.
