US stocks opened higher on Monday, poised to continue their winning streak as investors eagerly awaited the upcoming inflation report, which could signal the beginning of interest rate cuts.
The S&P 500, Nasdaq Composite, and Dow Jones Industrial Average all saw gains of around 0.2% to 0.3%, with the Dow coming off its best week of the year. The recent rally in May has been fueled by strong earnings reports and renewed optimism for a Federal Reserve easing of monetary policy.
Investors have been closely monitoring inflation data, with concerns about the economy overheating. The upcoming Consumer Price Index update on Wednesday will provide insight into whether inflation remains elevated into the second quarter, potentially paving the way for multiple rate cuts this year.
In individual stock news, GameStop shares surged by 45% as meme stocks made a comeback, driven by the return of “Roaring Kitty,” a social media influencer credited with sparking the meme stock frenzy in 2021. His post on Sunday led to a spike in GameStop’s stock price, highlighting the power of social media in influencing market movements.
Overall, the market is gearing up for a busy week of economic releases, with the focus on inflation data and key earnings reports from companies like Home Depot and Walmart. The outcome of these events will likely shape investor sentiment and determine the future direction of the stock market.