Nasdaq Index, Dow Jones, S&P 500 News: Tech Rally Continues while GameStop Revives Meme Stock Surge

S&P 500 Futures Edge Up Amid Investor Optimism

S&P 500 futures rose slightly on Monday as investors aimed to extend the market’s positive momentum from May into June. Wall Street wrapped up May on a high note, with all three major indices recording their sixth positive month in seven. The Nasdaq Composite rose 6.9%, marking its best month since November 2023.

At 11:57 GMT, Dow futures are trading 38780.00, down 11.00 or -0.03%. S&P 500 Index futures are at 5306.25, up 10.75 or +0.20% and Nasdaq-100 Index futures are trading 18683.00, up 92.00 or +0.49%.

Stocks on the Move

GameStop shares surged 80% after a notable trader, known as ‘Roaring Kitty’, posted an account showing a $116 million position. The video game retailer’s shares soared to $42.55 in premarket trading. Keith Gill, who uses the alias DeepF——Value on Reddit, posted a screenshot revealing his substantial holdings in GameStop. According to the post, Gill owns 5 million shares worth $115.7 million and 120,000 call options expiring in June. Although the authenticity of the post hasn’t been verified, the market reacted strongly.

AMC shares also rose 24% in premarket trading, continuing the momentum from a 48% increase in May. The revival of meme stock interest has driven significant gains for both GameStop and AMC. GameStop capitalized on this rally by raising over $900 million through a stock sale.

Stericycle Shares Soar on Acquisition News

Stericycle’s shares jumped more than 7% in premarket trading following the announcement that Waste Management would acquire the company for $7.2 billion. The acquisition price of $62 per share represents a 20% premium over Stericycle’s closing price on Friday. This strategic move is expected to enhance Waste Management’s market position in the waste disposal industry.

Nvidia Unveils New AI Chip Model

Nvidia announced a new AI chip model named “Rubin” on Sunday, ahead of its previous “Blackwell” model’s release. Nvidia’s CEO Jensen Huang highlighted the company’s commitment to releasing new AI chip technology annually. Nvidia shares have surged over 120% year-to-date, reflecting strong investor confidence in the company’s AI capabilities.

AMD Enters AI Chip Race

AMD introduced new AI chips on Monday, intensifying its competition with Nvidia and Intel. AMD’s CEO Lisa Su unveiled the Ryzen AI 300 series for next-generation AI laptops and the Ryzen 9000 series for desktops at the Computex tech conference. These new products, expected to launch in July, aim to position AMD as a leader in AI technology. AMD shares were bolstered by this announcement as the company continues to innovate in the competitive AI chip market.

Market Forecast

The bullish sentiment from May appears to be carrying into June, with tech stocks leading the charge. However, the market’s direction will hinge on upcoming economic data and the Federal Reserve’s meeting later this month. Traders should watch for manufacturing data and the key jobs report this week, which could influence market movements. Overall, the outlook remains positive, particularly for growth and tech sectors, but volatility may increase as investors react to new information.

Technical Analysis

E-mini S&P 500 Index futures are higher on Monday after a successful test of the 50-day moving average on Friday. The price action indicates that this intermediate trend indicator, at 5216.84 today, is controlling the price action.

Given the short-term range of 5368.25 to 5290.25, traders should pay close attention to the market’s reaction at its pivot at 5329.25. A sustained move over this level could lead to a near-term test of its record high, while a prolonged move under this level will suggest a potential shift in investor sentiment.