PPI Surges Beyond Expectations, Nasdaq Sets New Record, GME Meme Stock Continues to Rise
The US Department of Labor announced yesterday that the Producer Price Index (PPI) for April increased by 0.5%, exceeding market expectations, indicating that inflationary pressures may take longer to ease. Federal Reserve Chairman Jerome Powell reiterated that the decline in inflation is slower than expected, which will keep the central bank on hold for a longer period of time. Yesterday, the Nasdaq, representing US technology stocks, closed at another all-time high, while “meme stocks” GameStop (GME) and its token GME surged for two consecutive days due to the return of Roaring Kitty.
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Powell: On hold period to be extended
PPI exceeds expectations, market awaits CPI data
Nasdaq hits historical high, meme stocks continue to soar
Federal Reserve Chairman Jerome Powell reiterated on Tuesday that the decline in inflation is slower than expected, which will keep the central bank on hold for a longer period of time. According to CNBC, Powell stated during his speech at the annual meeting of the Foreign Bankers’ Association in Amsterdam:
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“We never expected this to be a smooth road. But these (inflation data) are higher than I think anyone expected. This tells us that we need to be patient and let the restrictive policies take effect.”
Although he expects the inflation rate to decline this year, he has not seen that happening so far.
However, Powell also reiterated that he does not expect the Fed to raise interest rates.
The US Department of Labor announced on the 14th that the Producer Price Index (PPI) for April increased by 0.5%, exceeding market expectations. Inflationary pressures may take longer to ease due to the surge in service prices.
US CPI inflation data for April will be released on Wednesday (15th). Economists estimate a 0.4% monthly increase in overall CPI for April, mainly due to gasoline prices reaching a six-month high. Although the upward trend in core goods prices has largely subsided, core services inflation remains high. However, after the unexpectedly high CPI last month, it is expected that the April CPI will have some relief.
According to the CME FedWatch Index, the market generally expects the Fed to have a chance to start a rate cut cycle after September.
Yesterday, the Nasdaq, representing US technology stocks, closed at another all-time high at 16,511.18.
“Meme stock” GameStop (GME) surged 60.10% to $48.75 per share on Tuesday. The token GME, which shares the same name, also surged by 70%. Roaring Kitty, who led the epic GameStop short squeeze event, released stickers and a series of videos on X for the first time after three years of silence, triggering FOMO sentiment in the community.
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GameStop short squeeze leader Roaring Kitty returns, GME stocks/tokens surge
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