Dow Jones Industrial Average futures were little changed early Monday, while the S&P 500 and Nasdaq rose. NVIDIA (NVDA) and Advanced Micro Devices (AMD) boosted shares of the artificial intelligence chipmaker on the news. And GameStop GME shares surged on the stock market today after meme investor “Roaring Kitty” revealed an apparently large investment.
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Dow Jones futures were roughly flat relative to fair value, S&P 500 futures rose 0.2% and Nasdaq 100 futures rose 0.5%. This comes after the stock market’s rally last week lost steam but recovered on Friday afternoon.
Meanwhile, the yield on the 10-year Treasury note fell to 4.47% after rising 4 basis points to 4.51% last week.
Oil prices were trading slightly lower at around $76.85 a barrel, after falling 0.9% last week and 6% in May. On Sunday, OPEC+ agreed to extend production cuts through 2025.
Additionally, key manufacturing data is due to be released on Monday morning, part of a big week for economic reports.
Remember that Dow Jones futures and other pre-market trading does not necessarily translate into actual trading in the next regular stock market session.
Stock Market Today: Nvidia News
Nvidia CEO Jensen Huang touted the company’s future AI chips on Sunday, the day before Computex 2024. Am (AMD), Arm Holdings (ARM) and Qualcomm (QCOM) unveiled its AI chip at an electronics trade show in Taiwan on Monday.
Nvidia stock is on the IBD Leaderboard. Nvidia and ARM stock are on the IBD 50.
During his speech on Sunday, Huang highlighted the huge benefits data centers can gain from adding advanced GPUs to their data centers and PCs.
“The more you buy, the more you save,” Huang says. “That’s the CEO’s calculation. It’s not exact, but it’s right!”
Nvidia shares were up more than 3% early Monday. The stock price had risen 3% last week to 1,096.33 but was down from a high of 1,158.190 hit on Thursday.
With Nvidia launching its Blackwell AI chips this year, Huang announced plans to unveil Blackwell Ultra chips in 2025 and the next-generation Rubin platform in 2026.
Other AI chip stocks also rise
AMD CEO Lisa Su also unveiled the company’s AI roadmap for the next two years at Computex, and also highlighted the chipmaker’s latest AI processors for AI PCs, including the Microsoft Copilot+ PC.
AMD shares were up less than 2% in early trading, and Tuesday’s high of 174.55 could be a good opportunity for early entry.
Qualcomm’s Cristiano Amon showed off the wireless chipmaker’s latest Snapdragon chips for Copilot+ PCs, and ARM’s Rene Haas said the company aims to AI-enable 100 million ARM-powered devices by the end of the year.
Qualcomm rose 2% after its shares fell 3% last week, reversing their decline from a record high.
Arm shares rose 3% in the stock market today, reclaiming their 50-day line after rising 5.1% last week. Investors could use Tuesday’s high of 125.98 as an opportunity to enter the stock early.
GameStop’s stock price soars due to Roaring Kitty
Kevin Gill, known as Roaring Kitty, shared screenshots on Reddit on Sunday that showed he bought 5 million GameStop shares at $21.27 each, as well as 120,000 call options with a strike price of $20 each expiring on June 21, worth $65.7 million.
Gill helped spark the meme-stock boom in 2021, rekindling interest in GameStop and other stocks a few weeks ago with a range of memes that suggested he was active again.
GameStop shares surged 70% in early trading to about $39.50, below the $64.83 they hit on May 14 at the height of the Gill frenzy last month.
AMC Entertainment (AMC) rose more than 20%.
Stock market today: Automakers report strong deliveries
Meanwhile, Chinese electric vehicle manufacturers Lee Auto (LI), Nio (NIO), XPeng (XPEV), ZiKer Intelligent Technology Holding (ZK) and Tesla (TSLA) Nemesis BYD BYDDF reported strong May shipments, Nio and newly listed Zeekr hit monthly all-time highs, Chinese EV stocks were up small to solidly, and Tesla shares were up slightly.
In other news: Spotify (SPOT) is raising its U.S. premium rates for new subscribers from $10.99 to $11.99 per month. Spotify rose about 6%.
Stericycle (SRCL) rose more than 15% premarket to its highest since January 2022. Waste Management Waste Management has agreed to acquire the medical waste processor for $62 per share in cash, valuing the company at about $7.2 billion, including about $1.4 billion in debt. Waste Management shares fell 1.5% in pre-market trading.
Becton Dickinson (BDX) rose about 2% after the medical device company said it would acquire the business unit. Edwards Lifesciences (EW) Becton Inc. agreed to buy Edwards’ critical care unit, which focuses on advanced patient monitoring using artificial intelligence technology, for more than $4 billion. Edwards shares also rose about 2% in premarket trading.
At 10 a.m. ET, the Institute for Supply Management will release its manufacturing index for May, which economists expect to rise 0.6 percentage points to 49.8, just below the breakeven mark of 50. The ISM services index is due out on Wednesday, and May employment is due out on Friday.
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Stock market ends week on a strong note
The Dow Jones Industrial Average fell 1% last week on the stock market and fell below its 50-day mark despite a 1.5% gain on Friday.
The S&P 500 fell 0.5% and the Nasdaq lost 1.1%, but both indexes closed above their 21-day lines after closing below them on Friday. The small-cap Russell 2000 rebounded to post modest gains after closing below its 50-day line on Wednesday.
Software stocks fell sharply as they reacted weakly to the earnings results.
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