Meme Stock Mania is Back! Nasdaq Hits Record High

Equities

On Tuesday, the FTSE 100 rose slightly by 0.2%, having rebounded from a break in its recent winning streak. The midcap FTSE 250 also saw a rise, ending the day up by 0.3%. This movement was led by the personal goods sector, which saw a notable rise of 2.0%.

Vodafone saw its shares rise by 4.7% after it successfully met market expectations for the fiscal year ending in March. Anglo American, on the other hand, fell 3.2% after news broke that it is considering an initial public offering of its diamond business, De Beers.

The Nasdaq Composite led the gains with a rise of 0.75%, achieving a new record close. The S&P 500 and the Dow Jones Industrial Average were not far behind, with increases of 0.48% and 0.32%, respectively. These gains were largely influenced by Federal Reserve Chair Jerome Powell's reassurances, which helped soothe investors' nerves about interest rate hikes.

Alphabet Inc. saw a modest increase in its shares by 0.7% following updates on its artificial intelligence technology, which included enhancements to its search engine and its Gemini chatbot. Home Depot, however, experienced a slight decline of 0.1% in its shares after reporting a drop in same-store sales, reflecting a consumer trend towards smaller home improvement projects. Alibaba’s shares fell dramatically by 6% due to a significant drop in its fourth-quarter profits.

Among the more volatile stocks, GameStop saw an exceptional increase of 60% in its share price after. AMC Entertainment and Koss Corp also saw substantial gains, with their shares rising by almost 32% and 40.7%, respectively, buoyed by continued interest in meme stocks.

Forex & Commodities

Asian stocks witnessed gains and the US dollar softened, influenced by mixed US producer price data and anticipation of the forthcoming US consumer price report. The euro climbed to a one-month high of $1.0828, while the dollar index, which compares the US dollar against six major currencies, settled at 104.97. The yen strengthened slightly to 156.29 per dollar after touching a two-week low.

Gold prices remained stable, trading at around $2,357 per ounce in a narrow range. Investors are keenly awaiting the US inflation data, which might signal the potential for interest rate cuts, directly impacting gold prices.

In the oil markets, prices edged higher due to anticipated US crude and gasoline inventory drawdowns and a weakening US dollar, which makes oil cheaper for holders of other currencies. US West Texas Intermediate crude increased by 0.68% to $78.55 per barrel, while Brent crude advanced 0.59% to $82.87 per barrel. The expectation of a summer demand surge and ongoing concerns about Canadian oil supply disruptions due to wildfires also supported the price increase.