Wall Street Jumps Back To Record Highs, Dow Hits 40,000 As Inflation Fears Recede, Meme Stock Frenzy Returns: This Week In The Market

Major market indexes rallied back to record highs during the week, marking the fourth consecutive week of gains. This surge was buoyed by inflation data that was broadly in line with expectations, easing concerns from the first quarter about resuming price pressures and bolstering investor expectations for potential interest rate cuts.

In April, the Consumer Price Index (CPI) increased by 3.4% compared to the same month last year, down slightly from March's 3.5% annual rate and matching estimates.

The Dow Jones Industrial Average reached the 40,000 mark on Thursday, pushing its bull market rally to nearly a 25% surge since October.

Among sectors, semiconductors, as tracked by the iShares Semiconductor ETF SOXX, continued to outperform, as sentiment toward AI-driven growth remains elevated.

Meme Stocks On Rollercoaster

A key market theme during the week was the resurgence of meme-related stocks. Shares of AMC Entertainment Holdings Inc AMC and GameStop Corp. GME skyrocketed on Monday and Tuesday as social media influencer Keith Gill, known for sparking the 2021 meme stock frenzy, returned after a three-year break.

GameStop Tanks

GameStop shares dropped 25.9% following the announcement Friday of a 45-million-share offering and disappointing preliminary first-quarter revenue estimates, which came in below analyst expectations.

Reddit Partners With OpenAI

Reddit Inc. RDDT stock spiked higher after announcing a partnership with OpenAI. The collaboration will grant OpenAI’s ChatGPT access to Reddit data and introduce AI-powered features to Reddit.

Buffett Buys Chubb

Warren Buffett's Berkshire Hathaway Inc BRK BRK acquired 26 million shares of Chubb Ltd CB, signaling confidence in the insurer despite challenges in the insurance market due to climate change. The $6.7-billion stake has made Chubb Berkshire’s ninth-largest holding.

Dimon's Fiscal Warning

Jamie Dimon, CEO of JPMorgan Chase & Co. JPM, expressed concern over the national deficit, which reached $1.9 trillion in 2024, representing over 6% of GDP. Dimon emphasized the need for the government to address this issue to avoid potential economic instability, stressing the importance of balancing deficit reduction with sustainable growth.

Cybertruck Lags Rivals

Tesla Inc. TSLA’s Cybertruck, launched in November 2023, trails behind Ford Motor Co.‘s F F-150 Lightning in registrations, but surpasses Rivian Automotive Inc.’s RIVN R1T and General Motors Co.‘s GM Silverado EV. In March, the Cybertruck had 1,158 registrations, compared to 2,893 for the F-150 Lightning.

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Image generated using artificial intelligence via Midjourney.