Benzinga - by Piero Cingari, Benzinga Staff Writer.
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 (NYSE: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 (NYSE:AMC) and GameStop Corp. (NYSE: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. (NASDAQ: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 (NYSE:BRK) (NYSE:BRK) acquired 26 million shares of Chubb Ltd (NYSE: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. (NYSE: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. (NASDAQ:TSLA)’s Cybertruck, launched in November 2023, trails behind Ford Motor Co.‘s (NYSE:F) F-150 Lightning in registrations, but surpasses Rivian Automotive Inc.’s (NASDAQ:RIVN) R1T and General Motors Co.‘s (NYSE:GM) Silverado EV. In March, the Cybertruck had 1,158 registrations, compared to 2,893 for the F-150 Lightning.
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