Market Close Ends with Mixed Results as Dow’s Winning Streak is Broken; GameStop’s Performance Recalls 2021 Meme Stock Surge

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Stocks traded in a sideways pattern during the final hour of trading on Monday, with major indexes opening and closing the afternoon on mixed notes. Notably, GameStop (GME), an original meme stock, captured attention throughout the session as its shares surged dramatically on heavy trading volume.
Market Close Ends with Mixed Results as Dow's Winning Streak is Broken
Market Close Ends with Mixed Results as Dow’s Winning Streak is Broken

The Dow Jones Industrial Average ended the day with a 0.2% decline, marking the end of its eight-day winning streak. The S&P 500 closed flat, while the Nasdaq Composite managed to edge up by 0.3%. The small-cap Russell 2000, which initially showed stronger gains, closed with a modest increase of 0.1%.

Trading volume increased on both the Nasdaq and the New York Stock Exchange compared to the same time on Friday, according to preliminary data.

Among exchange-traded funds (ETFs), the Invesco QQQ Trust (QQQ) ticked up by 0.2%, while the Innovator IBD 50 ETF (FFTY) slipped by 0.4%.

Meanwhile, the yield on the benchmark 10-year Treasury dipped to 4.49%, and West Texas Intermediate crude oil prices climbed above $79.15 per barrel.

Investors are anticipated to closely monitor Tuesday’s April Producer Price Index (PPI) report, followed by Wednesday’s release of April’s Consumer Price Index (CPI) data and retail sales figures. The headline CPI is expected to show a year-over-year increase of 3.4%, while the core CPI, which excludes food and energy prices, is forecasted to rise by 3.6%.

GameStop experienced significant volatility, with its shares more than doubling at one point during the day before trimming gains. The stock closed up a remarkable 74.4% amid heavy trading volume. This surge was linked to buzz surrounding Keith Gill, known as Roaring Kitty on social media platform X, who posted his first tweet in nearly three years.

Gill was instrumental in fueling GameStop’s frenzied moves in 2020 and 2021, triggering a short squeeze that propelled the stock’s price upward. GameStop attempted to form a cup base with an 18.59 buy point on Friday. However, today’s surge pushed the stock well beyond its buy zone.

Another meme stock, AMC Entertainment (AMC), also saw a surge of 78.4% in sympathy with GameStop’s rally.

In other notable movements, Novavax (NVAX) surged 47.6% on heavy volume, following its significant gains on Friday. This rally was sparked by news that Novavax will collaborate with Sanofi (SNY) to develop a combined Covid/flu vaccine.

Alphabet (GOOGL), part of the IBD 50 and Magnificent Seven stocks, initially traded lower but ended the day with a 0.3% gain ahead of Google’s developer event scheduled for May 14.

Walgreens Boots Alliance (WBA) spiked 5.4% on news of its plans to sell its U.K.-based Boots pharmacy stores.

Overall, the market saw diverse movements across various sectors and individual stocks, reflecting ongoing volatility and investor sentiment.

 

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