Good day, readers!
Thursday is a landmark day for global monetary policy: The European Central Bank (ECB) is poised to become the first major central bank to cut rates this economic cycle, with its decision due at 8:15 a.m. ET. Meanwhile, the Federal Reserve is expected to stand pat until September.
Shares of Nvidia, the latest entrant to the $3 trillion club, are up again in premarket trading. Even so, the stock rally looks set to pause after the S&P 500 hit a record on Wednesday.
🚨 Follow our live coverage throughout the day for the latest news affecting markets.
Alexander Osipovich looks at the GameStop trades done by Keith Gill, the meme-stock influencer also known as Roaring Kitty, and how they pose a conundrum for regulators.
Stocks to Watch:
- Nvidia: The chip maker's shares rose in heavy trading premarket, a day after its market valuation topped $3 trillion. Its 10-for-1 stock split is planned for Friday.
- Lululemon Athletica: The sportswear maker said it would buy back more shares and posted better-than-expected quarterly profit and revenue. Its shares rose about 9% premarket.
- Microsoft: The Federal Trade Commission is investigating whether the company structured a deal with an AI startup to avoid a government antitrust review.
- Five Below: The discount retailer cut its profit forecasts, citing the effects of inflation on low-income shoppers. Its shares dropped 16% ahead of the market open.
Keith Gill’s GameStop Trades Pose Conundrum for Market Cops
Keith Gill, the meme-stock influencer known as Roaring Kitty, placed a big bet on GameStop, then single-handedly moved the stock higher by returning to social media. Was that market manipulation? Lawyers say it is unlikely that the Securities and Exchange Commission could bring a case against Gill based on the facts currently known about his trading.
For more details, keep reading.
Charting the Markets
- Nvidia’s valuation surpassed $3 trillion Wednesday, with the maker of prized artificial-intelligence chips becoming the third company ever to reach the milestone. It is now valued just above Apple and behind only Microsoft.
- The European Central Bank is almost certain to cut interest rates on Thursday. Investors expect the Federal Reserve won’t follow suit until September. It is unusual—though not completely unheard of—for the ECB to chart a different course from the Fed.
- Bad weather has dampened demand for a lot of building products and construction materials this spring, but all the hail and wind has lifted the prospects for firms that sell roofing.
Must Reads:
- After years of playing it safe with artificial intelligence, Apple is now trying to catch up.
- Christophe Fouquet recently took the reins of a little-known company that makes some of the world’s most sophisticated machines. It is also smack in the middle of the chip battle between the U.S. and China.
- Elon Musk’s startup xAI is planning to build a supercomputer in Memphis, Tenn., as the young company races to reach rivals that have had yearslong head starts developing generative AI.
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On this day in 1934: The Securities Exchange Act, which created the Securities and Exchange Commission and required companies to file registration documents with stock exchanges, was signed into law by President Franklin D. Roosevelt.
That's all for today, folks. Stay tuned for more updates!
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