After several consecutive days of decline, US stocks surged on Wednesday, marking a notable rebound in the market’s performance.
US stocks rebounded Wednesday after several days of red closings, an unusual occurrence in the market’s bullish start to 2024. The S&P 500 (^GSPC) was up 0.8% while the blue-chip Dow Jones Industrial Average (^DJI) rose about 1.2% and the Nasdaq Composite (^IXIC) gained 0.5%. The S&P 500 hit a fresh record close of 5,248.
A stock rebound would come after a three-day losing streak for the benchmark S&P 500, which has set a new record closing high 20 times this year. And the gains extend beyond the start of 2024. The index is on track for its fifth-straight monthly gain — and that could be a signal it’s poised to run further.
Fed Governor Christopher Waller is set to speak later Wednesday as investors await the latest reading of the Personal Consumption Expenditures (PCE) price index. That index, which contains the Federal Reserve’s preferred “core” PCE inflation measure, is set for release on Friday.
Also in focus is the return of the meme stock, the mania around companies that have become phenomena on social media. Investors need not look further than Reddit (RDDT), which as a platform has been responsible for much of the frenzy over the years. Reddit stock had doubled from its IPO price, though it fell 8% on Tuesday as the stock gained short interest due to its recent surge.
Meanwhile, shares of Trump Media and Technology (DJT), the social media startup founded by presumptive Republican presidential nominee Donald Trump, gained another 13% after Tuesday’s 16% gain. But perhaps the OG meme stock, GameStop (GME), plunged 14% after reporting what one analyst called an “unsustainable” sales decline and announcing job cuts.
The notable surge in US stocks showcases a significant rebound in market sentiment, indicating renewed investor confidence in the midst of recent volatility.
