New York, NY – Nasdaq futures surged on Monday, signaling a positive start to June for US stocks as expectations for interest rate cuts resurface and the frenzy over meme stocks intensifies. Contracts for the Nasdaq 100 and the S&P 500 saw gains of 0.4% and 0.2%, respectively, driven by a surge in Nvidia shares following an AI chip update. However, Dow Jones Industrial Average futures remained mostly flat.
The spotlight was on GameStop shares, which skyrocketed over 100% in pre-market trading after a Reddit post by influential trader Keith Gill, also known as “Roaring Kitty,” revealed a significant bet on the stock. This resurgence in meme stock activity also saw AMC shares rise over 20% alongside GameStop’s rally.
The positive momentum in the stock market is set to build on strong performances in May, where all three major gauges broke records. Optimism grew after PCE data suggested a possible downturn in inflation, leading investors to anticipate a more favorable stance from the Federal Reserve on interest rate cuts.
Upcoming data, including the May jobs report and other labor indicators, will be crucial in gauging investor sentiment on the Fed’s next moves. Traders have increased bets on a Fed rate cut in September compared to the previous week, according to the CME FedWatch tool.
In the tech sector, Nvidia’s pre-market gains hinted at a resurgence in AI enthusiasm, with the chipmaker unveiling a new AI platform and promising faster model upgrades. Competitor AMD also saw its stock rise alongside the launch of its own new AI lineup and development plans.
Overall, the market is buzzing with activity, as investors brace for potential shifts in economic policies and market dynamics. The ongoing developments in the tech industry, particularly in AI, are driving excitement and speculation among traders, pointing towards a dynamic and eventful start to the month of June.