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
Be a smarter, better informed investor.
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?
-
Use the 'Newton Rule' to Grow Your 401(k) Retirement SavingsHarnessing Sir Isaac Newton's rule of retirement can boost your 401(k) savings while you chill.
-
Are You a Small Business Owner Buckling Under Economic Pressure? Here's How You Can CopeSignificant emotional and financial challenges, including tariff worries, are piling up on small business leaders. Here's how leaders can develop more healthy coping strategies and systems of support.
-
Are You a Small Business Owner Buckling Under Economic Pressure? Here's How You Can Cope
Significant emotional and financial challenges, including tariff worries, are piling up on small business leaders. Here's how leaders can develop more healthy coping strategies and systems of support.
-
To Raise Prices or Not to Raise Prices: Tariff Tips for Small BusinessesSmall businesses are making critical decisions. Should they pass on higher costs due to tariffs, or would that only cost them more in lost customers?
-
Five Retirement Planning Traps You Can't Afford to Fall Into, From a Wealth AdviserTo help ensure you reach your savings goals and enjoy financial security in your golden years, be aware of these common pitfalls. The key is to be proactive, informed and flexible.
-
Your 401(k) Can Now Include Alternative Assets, But Should It? A Financial Adviser Weighs InMany employer-sponsored plans offer limited investment options, which can stunt growth. But participants considering alternatives might need some sound advice to get the most from their accounts.
-
Will Taxes Shred Your 401(k) or IRA During Your Retirement? It's Very LikelyConventional wisdom dictates that you save in a 401(k) now and pay taxes later, but turning that rule on its head could leave you far better off. A financial planner explains why.
-
More Retirees Are Renting: Should You? A Financial Adviser Weighs InIn some ways, renting is cheaper, more flexible and easier, but unless you understand the implications for your taxes and health costs, it might not be for you.
-
Dow Dives 878 Points on Trump's China Warning: Stock Market TodayThe main indexes erased early gains after President Trump said China is becoming "hostile" and threatened to cancel a meeting with President Xi.
-
I'm a Real Estate Investing Pro: This 1031 Exchange Strategy Can Triple Your Cash FlowSavvy investors can use 1031 exchanges to unlock value by moving capital across markets in a play called geographic arbitrage. These tax implications can make or break the strategy.
