Dow Jones Soars 200 Points Amid CPI Inflation Report; GameStop (GME) Suffers 25% Drop

• The Dow Jones Industrial Average and other major indexes rose Wednesday, as investors reacted to a mild inflation report that offers further guidance on interest rates.
• Meanwhile, meme stocks GameStop (GME) and AMC Entertainment (AMC) cooled off on the stock market today after two straight sessions of massive gains.
• In morning action, the Dow Jones Industrial Average trimmed gains to 0.4% after briefly rallying more than 200 points.

As investors react to a mild inflation report, the Dow Jones Industrial Average and other major indexes rise, while meme stocks GameStop and AMC Entertainment cool off.

Stock Market Today: CPI Inflation Report

Early Wednesday, the Labor Department said that its consumer price index rose 0.3% on the month, with a 3.4% annual increase, in line with Econoday estimates. The core CPI rose 0.3%, with a 3.6% year-over-year increase. Those numbers, which exclude food and energy, also met estimates.

Dow Jones Rises

On Tuesday, the Dow Jones Industrial Average moved up 0.3%, and the S&P 500 gained 0.5%. The tech-heavy Nasdaq composite rallied 0.8%. Investor’s Business Daily’s Big Picture column on Tuesday said: “IBD’s current recommended allocation remains at 40% to 60%. The rally attempt still looks fine, even though 2% gains for the Nasdaq and S&P 500 on April 26 and May 3 didn’t meet the qualification for follow-through days due to slightly lower volume.”

Stock Market Today: Best Stocks To Watch

NetApp (NTAP), PDD (PDD), Taiwan Semiconductor Manufacturing (TSM) and Tradeweb Markets (TW) — plus Dow Jones components JPMorgan Chase (JPM) and Merck (MRK) — are among the best companies to watch on the stock market today.

Dow Jones: JPMorgan, Merck

JPMorgan is breaking out past a flat base’s 200.94 entry following strong gains in recent weeks. Shares tacked on 0.5% on the stock market today. Meanwhile, drug giant Merck is building a flat base that has a 133.10 entry. Merck stock was up 0.3% Wednesday.

Stock Market Today: Companies To Watch

These are four stocks in or near buy zones in today’s stock market: American Express (AXP), Texas Roadhouse (TXRH), Chipotle (CMG), and Tradeweb Markets (TW).

Magnificent Seven Stocks: Nvidia, Tesla

Among Magnificent Seven stocks, Nvidia (NVDA) rallied 1.5%, while Tesla (TSLA) dropped 2.1% Wednesday morning.

Conclusion

The Dow Jones Industrial Average and other major indexes rose Wednesday, as investors reacted to a mild inflation report that offers further guidance on interest rates. Meanwhile, meme stocks GameStop (GME) and AMC Entertainment (AMC) cooled off on the stock market today after two straight sessions of massive gains. In morning action, the Dow Jones Industrial Average trimmed gains to 0.4% after briefly rallying more than 200 points.