Record-Breaking Week Sends Dow Above 40,000

Investors unpacked mixed inflation data midweek

Deputy Editor
May 17, 2024 at 1:59 PM
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Though the week started off shaky for the Dow Jones Industrial Average (DJI), as it snapped an eight-day win streak on Monday, the following rebound inevitably pushed it over 40,000 for the first time ever. In regard to inflation data, investors largely brushed off hotter-than-expected producer price index (PPI) data Tuesday, while Wednesday's cooler-than-expected consumer price index (CPI) data gave stocks a boost.

The S&P 500 Index (SPX) and Nasdaq Composite Index (IXIC) marked record highs this week as well, with all three major indexes on track for weekly wins as of this writing. For the Dow, this week's win would mark its fifth-straight week of gains, while the S&P 500 and Nasdaq would close their fourth consecutive weekly wins. 

Meme Mania and Other Movers

The return of "meme stocks" drew plenty of attention this week. A social media barrage from Roaring Kitty, the Reddit user and YouTuber who ignited the retail trader craze of 2021, sent former meme stocks GameStop (GME) and AMC Entertainment (AMC) soaring earlier in the week. Furthermore, solar meme stock SunPower (SPWR) saw a short squeeze rally of its own before dropping sharply on a downgrade. 

Other sizable stock moves this week include blue chips RTX Corp (RTX) and Walmart (WMT), both of which nabbed record highs after their respective earnings reports. Elsewhere, Dell Technologies (DELL) stayed red hot after a lofty bull note, while Reddit (RDDT) popped after a deal with OpenAI.

AI Craze Continues

Arm Holdings (ARM) rose after Nikkei Asia reported that the semiconductor name hopes to launch its first artificial intelligence (AI) chip next year. Plus, Chubb Ltd (CB) was revealed to be the mystery investment of Warren Buffet's Berkshire Hathaway (BRK.A) -- kept confidential last year -- while Take-Two Interactive (TTWO) brushed off the GTA delay

Fed Updates Next Week

Next week will bring a panel consisting of multiple Federal Reserve presidents, as well as May's Federal Open Market Committee's (FOMC) meeting minutes. Plus, there will be a host of retail earnings, as well as Nvidia's (NVDA) latest earnings report. 

In the meantime, Schaeffer's Senior Quantitative Analyst Rocky White takes a look at expensive vs. cheap stocks amid the recent "meme stock" comeback, while Senior V.P. of Research Todd Salamone notes three sentiment indicators that turned bullish last week. 

 

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