Meme Stock Rout Continues as Inflation Report Spooks Investors
Meme stocks, including Reddit (NYSE: RDDT), Trump Media & Technology Group (NASDAQ: DJT), AMC Entertainment Holdings (NYSE: AMC), and GameStop (NYSE: GME), experienced significant declines on Wednesday following the release of the March Consumer Price Index (CPI) report.
The S&P 500 Index (SPX) also retreated amidst growing economic uncertainties and investor anxiety over inflation figures.
Shares of Reddit, DJT, AMC, and GameStop Continue to Dip
At the time of writing, Reddit’s stock, which has been volatile since its IPO, faced a 5.36% drop, with shares trading at $42.59. Similarly, DJT shares saw a sharp decline of 6.89%, closing at $34.89, underperforming relative to the initial hype it received.
AMC Entertainment Holdings and GameStop, two of the most prominent meme stocks from the previous year’s trading frenzy, also experienced significant losses. AMC’s stock price dropped by 4.55% to $2.8350, now 99% below its all-time high, while GameStop’s stock closed at $10.89, down by 1.09%, well below its previous highs.
March CPI Print Spooks Investors; SPX Drops Over 1%
The March CPI report indicated that consumer prices rose by 0.4%, contributing to ongoing inflation pressures.
Significant impacts were noted in sectors such as housing and utilities. Year-over-year inflation remains concerning, prompting expectations of tighter monetary policy responses from the Federal Reserve. The broader market, represented by the S&P 500 Index, retreated by 62.01 points, or 1.19%, to close at 5147.90.
Disclaimer: The author does not hold or have a position in any securities discussed in the article.
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