Nasdaq outperforms markets with 0.49% gain; GameStop, AMC rise

A sign for Wall Street hangs outside at the New York Stock Exchange on April 20, 2020. Photo by John Angelillo/UPI

June 7 (UPI) — The Nasdaq Composite posted moderate gains, while the other two indexes fell on Monday, as so-called “meme stocks” saw a renewed surge.

The tech-heavy Nasdaq gained 0.49% to start the week, while the Dow Jones Industrial Average dropped 0.36% and the S&P 500 slid 0.08%, falling short of an intraday record high.

Meme stocks, which have largely been targeted by investors from the Reddit group r/WallStreetBets, saw a boost on Monday.

GameStop stock gained 12.74% ahead of an annual shareholder meeting Wednesday where founder Ryan Cohen is expected to be named the video game retailer’s next chairman of the board.

BlackBerry stock also rose 13.78%, while AMC Entertainment gained 14.8% after selling 11.55 million shares and raising more than $587.4 million on Thursday.

Microsoft stock also rose 1.2% and Boeing gained 1.1% as the blue chips helped the Dow avoid greater losses.

Monday’s overall losses came after the major indexes came off a week where all three posted gains with the S&P 500 rising 0.6% to bring its gains for the year to 12%.

“Stocks have climbed back toward record-high territory as the pace of the economic recovery appears to be well-balanced,” Craig Johnson, chief market technician at Piper Sandler told CNBC. “Signs of rising inflation have mostly been offset by rising subscriptions to the Fed’s ‘transitory’ outlook.”


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