US stocks rebounded Wednesday after several days of red closings, as the S&P 500 jumped to a fresh record and the Dow surged more than 475 points.
The S&P 500 (^GSPC) was up 0.8% to close at a record of 5,248.50. The blue-chip Dow Jones Industrial Average (^DJI) rose about 1.2%, and the Nasdaq Composite (^IXIC) gained 0.5%.
The stock rebound came after a three-day losing streak for the benchmark S&P 500, which has set a new record closing high more than 20 times this year. And the gains extend beyond the start of 2024. As Yahoo Finance’s Jared Blikre notes, the index is on track for its fifth-straight monthly gain — and that could be a signal it’s poised to run further.
Later this week, investors will see 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 11% 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 14% after Tuesday’s 16% gain. But perhaps the OG meme stock, GameStop (GME), plunged 15% after reporting what one analyst called an “unsustainable” sales decline and announcing job cuts.
