Stock market today: Live updates

Check out the companies making headlines in midday trading:

GameStop, AMC Entertainment — The so-called meme stocks retreated significantly after a two-day rally. GameStop declined about 30%, while AMC dropped 20% as the trading frenzy seemed to fade. The sell-off in AMC shares also came after the company announced a debt-for-equity swap. Before Wednesday, GameStop and AMC were up 179% and 135% this week, respectively.

Boeing — Shares slipped 1.7% after the Justice Department said the airplane manufacturer broke a 2021 settlement that protected it from criminal charges related to two fatal 737 Max crashes. Boeing, which is now exposed to potential prosecution, denies the claims.

The full list can be found here.

— Hakyung Kim

April’s inflation report bodes good news for the market, according to Scott Helfstein, head of investment strategy at Global X.

“There are a lot of things that investors could worry about, but inflation isn’t among them,” Helfstein said in a note to clients on Wednesday. “The Fed has made progress towards the 2% goal, and the current inflation readings is not really worrisome. This probably means that the Fed probably keeps rates higher for longer and that is fine.”

Helfstein said he continues to believe that the central bank moves on “clear evidence” that inflation is below 3% and moving toward 2%, which is not true given that consumer prices rose 3.4% on a 12-month basis. “This should be welcome news to investors,” he said.

— Pia Singh

The Federal Reserve has “breathing room” to cut rates as early as September following Wednesday’s inflation data, but the central bank’s path is not set yet, according to Skyler Weinand, chief investment officer at Regan Capital.

“We’re still a far cry from the Fed’s desired 2% inflation level and the economy remains strong, so we’ll need a few more weak inflation prints to give the Fed the green light on lowering rates,” said Weinand. “The Federal Reserve is not out of the woods yet.”

— Alex Harring

BMO Capital Markets strategist Brian Belski now has the highest S&P 500 target on Wall Street after hiking his to 5,600 from 5,100.

“It has become clear to us that we underestimated the strength of the market momentum,” Belski said in a note to clients.

The new target is more than 6% above where the S&P 500 closed on Tuesday.

— Jesse Pound

The consumer price index’s lower-than-expected increase in April resulted in a positive market reaction. Meanwhile, retail sales came in flat on the month versus the forecast 0.4% rise, suggesting consumers felt pressure from the pace of the price increases.

“Although a slowdown in spending could turn into a problem for the economy, in the immediate term it takes some pressure off the Fed and that is what has been moving bond and stock markets the past couple of months,” said Chris Zaccarelli, Chief Investment Officer for Independent Advisor Alliance.

“We believe we are still in a Bull Market, so we expect the knee-jerk negative reaction on the Retail Sales miss to be overcome by the relatively good news on the CPI data which is at or below expectations,” he added.

— Hakyung Kim

About four stocks at the New York Stock Exchange rose for every decliner Wednesday, as the S&P 500 reached record highs. Overall, roughly 2,000 NYSE-listed names advanced, while 550 slipped, FactSet data shows — pointing toward conviction from traders in the move higher.

— Fred Imbert

Following a lighter-than-expected inflation report, the S&P 500 and Nasdaq Composite opened at new all-time highs during Wednesday’s trading session.

The broader market index added 0.4%, while the tech-heavy Nasdaq increased 0.6%. The Dow Jones Industrial Average gained 182 points, or 0.5%.

— Lisa Kailai Han

Check out the companies making headlines before the bell.

• AMC Entertainment, GameStop — AMC and GameStop shares posted fell in early morning trading as momentum fizzled from the meme stock craze, which was reignited Monday by a social media reappearance from “Roaring Kitty.” AMC shares were down more than 7% after the movie theater chain announced it will issue more than 23 million shares “in exchange for $163,850,000 aggregate principal amount of its 10%/12% Cash/PIK Toggle Second Lien Subordinated Notes due 2026.” GameStop shares slid 6%.
• Nio — Shares advanced 3.3% after JPMorgan upgraded the Chinese electric vehicle maker to neutral from underweight. The stock, which has soared over the past month, could benefit from Chinese government stimulus policy and Nio’s latest battery as a service (BaaS) strategy, which could drive sales, the bank said.
• Dell — The technology company rose about 2% after Morgan Stanley raised its price target on the stock. The bank said that Dell is “gaining momentum” with enterprise clients, including for AI server demand.

For the full list, read here.

— Pia Singh

The consumer price index rose 0.3% in April, slightly less than anticipated, lifting hope for Federal Reserve rate cuts in the near future. CPI was expected to have risen 0.4% month, per Dow Jones.

Year over year, CPI rose 3.4%, matching expectations. Core CPI, which strips out food and energy prices, rose 0.3% month on month and 3.6% year over year, both in line with expectations.

— Fred Imbert

The U.S.-traded shares of Brazil’s Petrobras sank 8% in premarket trading after the company announced a CEO change under political pressure.

The energy giant disclosed on Tuesday that CEO Jean Paul Prates had sent a request to negotiate his departure as CEO, and that the government agency overseeing the company had already chosen a replacement.

“The Brazilian government’s decision to replace PBR’s CEO Prates with former energy regulator Magda Chambriard appears to be an escalation of the push to intervene in the company,” Jefferies analyst Alejandro Anibal Demichelis said in a note to clients. Jefferies downgraded Petrobras to hold from buy.

— Jesse Pound

April’s consumer price index reading is due at 8:30 a.m. ET on Wednesday, and Wolfe Research expects the market to have a sharp reaction.

“Consensus is very tight once again heading into this morning’s report, and our sense is that even a modest upside or downside surprise could cause sharp short-term moves in stock prices,” wrote chief investment strategist Chris Senyek.

However, the strategist added that despite the potential moves in either direction, he’s not wavering from his current market outlook.

“While this morning’s CPI report could spark some big near-term moves, we don’t anticipate turning bearish until it’s clear that either (1) the U.S. is heading for recession, or (2) the Fed will hike to tame inflation. Neither are part of our base case!” he wrote.

— Lisa Kailai Han

AMC shares were down more than 1% in the premarket after the movie theater chain announced it will issue more than 23 million shares “in exchange for $163,850,000 aggregate principal amount of its 10%/12% Cash/PIK Toggle Second Lien Subordinated Notes due 2026.”

The stock has been on a tear this week, as the meme craze returned to Wall Street. Shares are up more than 135% week to date.

The consumer price index report is slated for release at 8:30 a.m. ET, and investors will comb through the numbers for clues on when the Federal Reserve may cut interest rates.

According to economists polled by Dow Jones, CPI is expected to have increased 0.4% month over month and 3.4% year on year for April. Core CPI, which strips out food and energy prices, is forecast to have grown by 0.3% month on month and 3.6% year on year.

One area that could be of interest for investors is housing, as pricing pressures in the space persist.

“The slower it comes down, the longer the path towards the Fed’s inflation target,” said Erica Groshen, senior economist at Cornell’s School of Industrial and Labor Relations. “We’re not seeing any big shifts in the housing market that would make me think it’s just now going to act differently. Demographics are slow to change. So I don’t really see an explanation for housing to react very differently than it has in the past.”

— Fred Imbert, Jeff Cox

European markets opened higher Wednesday following the Nasdaq’s record close, with the pan-European Stoxx 600 index rising 0.3%.

The U.K.’s FTSE 100 index was up 0.5% at 8,470, Germany’s DAX up 0.3% at 18,781, France’s CAC 0.3% higher at 8,249 and Italy’s FTSE MIB up 0.5% at 35,315, according to data from IG.

Shares of Rakuten Group dipped 4% on Wednesday after the Japanese technology conglomerate reported a net loss for a 15th straight quarter.

Financial results by the internet conglomerate released Tuesday showed an operating loss of 25.4 billion yen in the January to March quarter

The company said its mobile business logged a smaller operating loss of 71.9 billion yen compared with last year amid cost cuts and higher subscription growth.

The company’s financial unit, which consists of online banking, brokerage, credit card and insurance services, saw operating profits rise 47% from a year earlier to 39.3 billion yen.

— Charmaine Jacob

Sharp Corp shares plunged as much as 9.4% to their lowest level in nearly one month after electronics and LCD display maker posted an annual loss.

The company recorded a 149.9 billion yen ($958.7 million) loss for financial year ended March 2024. It had reported an annual loss of 260.8 billion yen in the previous year.

Sharp said the loss was mainly due to an impairment cost related to its Display Device segment.

“Net sales, operating profit and ordinary profit fell below previous forecast due to lower-than-anticipated demand for small and medium-sized displays for smartphones, PCs, and tablets, as well as delay of patent revenue recognition into the following fiscal year,” the company said in a statement.

— Shreyashi Sanyal

Australia’s government announced its annual budget late Tuesday, with measures aimed at easing cost of living, building more homes, and strengthening its healthcare system, among other things.

“This budget strikes the right balance between keeping pressure off inflation, delivering cost of living relief, supporting sustainable economic growth and strengthening public finances,” Jim Chalmers, Treasurer of Australia said in a joint statement with Australia’s prime minister, Anthony Albanese.

The government forecast a second surplus in 2023–24, “which would be the first time a government has delivered back‑to‑back surpluses in nearly two decades,” Chalmers said.

— Shreyashi Sanyal

Boeing shares fell about 1% in extended trading after the Justice Department said that the aircraft maker broke a 2021 agreement that shielded the company from criminal charges related to past 737 Max crashes.

The department said in a filing that the company violated the agreement by “failing to design, implement, and enforce a compliance and ethics program to prevent and detect violations of the U.S. fraud laws throughout its operations.”

Boeing will have 30 days to respond to the filing and could face prosecution.

— Leslie Josephs, Samantha Subin

Here are some of the stocks making the biggest moves after the bell:

• Boot Barn — The western apparel and footwear stock slid 7% after issuing light revenue and earnings guidance for the full year.
• Nextracker — The solar technology stock popped 9%. Nextracker posted $737 million in revenue for the fiscal fourth quarter, topping an LSEG estimate of $682 million.

Read the full list of stocks on the move here.

— Samantha Subin