Nasdaq 100 Dow Jones S&P 500 Tech Stocks Rally Treasury Yields Decline Exchange Glitch

Megacap stocks Apple, Meta, and Alphabet saw gains as Nvidia surged. GameStop soared due to Reddit influence. Market influenced by economic data.

The stock market saw key megacap stocks such as Apple, Meta, and Alphabet experience gains ranging from 1.1% to 1.7% as the yields on U.S. Treasury notes dropped by around 10 basis points each. Nvidia, a prominent player in artificial intelligence, surged 3.4%, pushing the Philadelphia SE Semiconductor Index up by 0.8% after CEO Jensen Huang announced the debut of the company's next-generation AI chip platform in 2026.

GameStop shares soared by 26.8% following a Reddit post by influencer Keith Gill, also known as "Roaring Kitty," who disclosed a $116 million investment in the gaming retailer. This significant increase underscores the continuing influence of social media on stock prices.

The NYSE Equities launched an investigation into a technical glitch that caused volatility pauses for several stocks. Among the S&P 500 sectors, six out of 11 saw gains, with technology leading the way with a 0.9% increase, while the energy sector experienced a decline of 1.7%.

Economic indicators point to a cooling economy as the Institute for Supply Management reported a decrease in manufacturing activity to 48.7 in May, below the expected 49.6. Yields started to fall from one-month highs on Friday as investors anticipated potential interest rate cuts by the Federal Reserve in September due to cooling inflation.

Despite the end of their five-week winning streaks, all three major Wall Street indexes posted significant gains for May. The S&P 500 rose by 4.8%, the Dow increased by 2.3%, and the Nasdaq nearly 7%, driven by strong earnings and expectations of easing monetary policy.

Looking ahead, market movements are likely to be influenced by key economic data releases, including surveys on the manufacturing and services sectors, factory orders, and the important nonfarm payrolls report on Friday. These reports will offer insights into the state of the U.S. economy and potential actions by the Federal Reserve. Sam Stovall, chief investment strategist at CFRA Research, emphasized that "AI drivers, earnings, and inflation will continue to drive the market," with a particular focus on upcoming employment data and broader economic reports.

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