Stocks were choppy Monday as investors looked ahead to a busy week of economic news. In addition to an appearance from Federal Reserve Chair Jerome Powell, investors will get key inflation updates, starting with tomorrow morning's release of the Producer Price Index.
Recent hotter-than-expected economic reports have pushed back expectations on the Fed's rate-cut plans. However, last Friday's weak jobs report was just the sort of bad-news-is-good-news data investors were looking for.
Deutsche Bank economists think Tuesday morning's inflation print will show slight month-to-month increases in both headline PPI and core PPI, which excludes volatile food and energy prices. The data will also give Powell the first look at April inflation numbers before tomorrow's mid-morning speech.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
No matter the results, the Deutsche Bank team expects Powell to stick close to the script he gave after the May Fed meeting. "As a reminder, Powell ditched calendar-based forward guidance and indicated it would take longer to gain sufficient confidence on inflation to cut rates – a theme largely echoed by other officials since the meeting," they said.
GameStop races higher as Roaring Kitty returns
In single-stock news, GameStop (GME) soared 74.4% today, with several media outlets pointing to a post on X from Keith Gill, aka "Roaring Kitty," as the catalyst behind the jaw-dropping rally. Gill and his fellow members of Reddit's WallStreetBets are often cited for sparking the massive short squeeze in early 2021 that created volatile trading in several highly shorted stocks. This weekend's X post was Gill's first in three years.
Today's surge in GME had a halo effect on fellow meme stock AMC Entertainment Holdings (AMC, +78.4%) and newly public social media platform Reddit (RDDT, 8.7%). Mark Hackett, chief of investment research at Nationwide, says that while this is "likely just a blip, [it's] still something for investors to watch."
Jefferies thinks Nvidia can rally another 33%
Elsewhere, Nvidia (NVDA) gained 0.6% after Jefferies analyst Blayne Curtis boosted his price target on the Magnificent 7 stock to $1,200 from $780, representing implied upside of 33% to current levels.
The analyst adds that Nvidia is a "top pick" among artificial intelligence (AI) stocks given the chipmaker's exposure to the technology. And while he admits that "there may need to be winners and losers eventually … the time is not now with [the] AI tide rising."
Curtis' new price target is hardly the highest on Wall Street. That honor goes to Hans Mosesmann of Rosenblatt Securities, who has a $1,400 price target on NVDA.
Overall, industry analysts tracked by S&P Global Market Intelligence have an average target price of $1,021.20 for Nvidia. They also have a consensus Strong Buy rating.
As for the main indexes, the Dow Jones Industrial Average declined 0.2% to 39,431 to snap its eight-day win streak as Home Depot (HD) dropped 1.6% ahead of its early morning appearance on the earnings calendar. The S&P 500 fell 0.02% to 5,221, while the Nasdaq Composite gained 0.3% to 16,388.
Related content
- When Is the Next CPI Report?
- What Is Stagflation and How Can Investors Prepare?
- When Is the Next Fed Meeting?
-
The Stoic Retirement: Ancient Wisdom for Today's RealityA "Stoic retirement" doesn't mean depriving yourself. It's a character-based approach to life and aging that can bring calm and clarity.
-
My Teen Crashed His Car and Now Our Insurance Has Tripled. What Now?Dealing with the costly aftermath of a teen car accident is stressful. Here are your options for navigating it.
-
11 Outrageous Ways To Spend Money in RetirementWhether you have excess cash to spend or want to pretend, here’s a look at 11 ridiculous ways retirees can splurge.
-
I'm a Financial Planner for Millionaires: Here's How to Give Your Kids Cash Gifts Without Triggering IRS PaperworkMost people can gift large sums without paying tax or filing a return, especially by structuring gifts across two tax years or splitting gifts with a spouse.
-
'Boomer Candy' Investments Might Seem Sweet, But They Can Have a Sour AftertasteProducts such as index annuities, structured notes and buffered ETFs might seem appealing, but sometimes they can rob you of flexibility and trap your capital.
-
AI Stocks Lead Nasdaq's 398-Point Nosedive: Stock Market TodayThe major stock market indexes do not yet reflect the bullish tendencies of sector rotation and broadening participation.
-
Got $100 to Gamble? These Penny Stocks Could Be Worth the RideVolatile penny stocks are high-risk plays with potentially high rewards. If you have $100 you can afford to lose, these three names are worth a look.
-
Quick Question: Are You Planning for a 20-Year Retirement or a 30-Year Retirement?You probably should be planning for a much longer retirement than you are. To avoid running out of retirement savings, you really need to make a plan.
-
Don't Get Caught by the Medicare Tax Torpedo: A Retirement Expert's Tips to Steer ClearBetter beware, because if you go even $1 over an important income threshold, your Medicare premiums could rise exponentially due to IRMAA surcharges.
-
I'm an Insurance Pro: Going Without Life Insurance Is Like Driving Without a Seat Belt Because You Don't Plan to CrashLife insurance is that boring-but-crucial thing you really need to get now so that your family doesn't have to launch a GoFundMe when you're gone.
-
Dow Adds 646 Points, Hits New Highs: Stock Market TodayIt was "boom" for the Dow but "bust" for the Nasdaq following a December Fed meeting that was less hawkish than expected.
