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Markets

Seems like the market is experiencing a bit of a shake-up after the Dow's eight-day winning streak came to an end. The mixed performance of stocks suggests some uncertainty among investors, possibly due to anticipation regarding upcoming inflation data. Interestingly, despite this mixed performance, "meme stocks" seem to be making waves reminiscent of the trend we saw back in 2021. This indicates that certain stocks, often influenced by online communities and social media buzz, are seeing significant increases in trading activity or valuation.

Here's the breakdown of today's market data:

• Nasdaq: Closed at $16,388.24, up 0.29%.

• S&P: Closed at $5,221.42, down 0.02%.

• Dow: Closed at $39,431.51, down 0.21%.

• 10-Year Treasury Yield: Stood at 4.481%, down by 2.0 basis points.

• Bitcoin: Priced at $62,936.21, experiencing a notable increase of 2.91%.

• Gamestop: Surged to $30.45, marking an impressive gain of 74.40%.

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Finance

Meme stocks are back

It's akin to Tom Brady coming out of retirement, but for individuals with Robinhood accounts: Keith Gill, also known as Roaring Kitty, the bandana-wearing day trader who catalyzed GameStop's monumental 2000% stock surge in 2021, has made a comeback on social media following a nearly three-year absence. His return reignited GameStop's rally, propelling it towards its most significant single-day percentage gain since the peak of the meme stock frenzy.

GameStop's shares surged by 119% yesterday and closed approximately 74% higher, largely attributed to a meme that Gill posted on X on Sunday, depicting a gamer locking in. The post quickly garnered millions of views, prompting fervent members of Reddit's r/wallstreetbets community—who have closely followed Gill's guidance—to flood into meme stocks at the start of the week.

Trading volumes soared, with more than 175 million GameStop shares exchanged yesterday—nearly 30 times the stock's daily average over the past year, according to Bloomberg. Trading halts were triggered nine times in just 90 minutes due to heightened volatility.

The rally dealt a hefty blow to short-selling hedge funds, causing them approximately $1 billion in losses, as reported by S3 Partners. Roughly a quarter of all available GameStop shares are currently held in short positions, according to FactSet.

Other meme stocks experienced significant gains yesterday as well, with AMC climbing approximately 78% and Reddit by 9%, as the rising tide of enthusiasm lifted various stocks.

Is GameStop headed to the moon? Probably not. Despite yesterday's surge, which added to a 57% increase this month alone, GameStop's stock remains valued at $30—just a fraction of its peak during the 2021 meme stock frenzy.

Since then, the retail chain has faced challenges. While GameStop reported its first yearly profit since 2018 in January, recent reports indicate increased layoffs and declining quarterly revenue.

Roaring Kitty's recent posts have been cryptic, with his X account sharing more ambiguous content such as GIFs and movie clips throughout the day yesterday. The reasons behind his actions are still unclear, though Bloomberg columnist Matt Levine has offered some speculative theories.

Technology

ChatGPT has been updated

Move aside, ChatGPT-4, and make way for ChatGPT-4o. The "o" signifies "omni," representing the latest advancement in OpenAI's flagship chatbot. This iteration boasts enhanced capabilities across text, vision, and audio, promising a faster and more versatile experience. Notably, it features a voice assistant inspired by the movie "Her," a favorite of Sam Altman, the CEO of OpenAI. While perhaps not as groundbreaking as the rumored search engine that preceded the announcement, it's worth noting the timing of this release just ahead of the Google I/O developer conference, where AI is anticipated to take center stage.

Sports

WNBA Will Never Be The Same

Basketball prodigy Caitlin Clark will make her professional debut tonight, stepping onto the court for the Indiana Fever against the Connecticut Sun at the packed Mohegan Sun Arena.

Clark revolutionized the perception of women's basketball during her college career at the University of Iowa, shattering records and drawing unprecedented crowds. Now, she's poised to usher in a new era for the WNBA.

WNBA Commissioner Cathy Engelbert has ambitious plans for the league, aiming to double the current $60 million TV rights deal by its expiration in 2025. This increase would pave the way for higher player salaries. Clark's arrival has already sparked several positive developments:

• The WNBA has introduced full-time charter flights for teams this season, addressing the previous practice of squeezing 6'5" players into Economy Plus seating.

• Ticket sales for WNBA games have surged by an average of 93% compared to last year, according to StubHub.

• The Indiana Fever will enjoy significantly increased national exposure, with thirty-six of their forty regular season games set to air nationally, a stark contrast to just one game last year.

Meme of the Day