Wall Street's Dance: Dow Nears 40,000, Reddit Rockets with OpenAI, GameStop's Dive – Weekly Market Insights

U.S. stocks held their ground on Friday, with Wall Street preparing for another potential milestone as investors weighed the prospects of future rate cuts.

The Dow Jones Industrial Average (^DJI) remained steady after touching the critical 40,000 mark for the first time during Thursday's session. The S&P 500 (^GSPC) edged up by 0.1%, while the Nasdaq Composite (^IXIC) also gained 0.1%, positioning all major indexes for weekly gains.

The recent surge in stock prices encountered resistance following comments from Federal Reserve officials indicating that interest rates may remain at historically high levels for an extended period. This tempered the optimism spurred by recent favorable inflation data that had fueled hopes for a rate cut in September. With a light economic and corporate calendar on Friday, there were few catalysts to push the Dow past the 40,000 threshold, while the S&P 500 and Nasdaq approached their own record highs.

Attention turned to Federal Reserve officials Mary Daly and Christopher Waller, who were scheduled to speak on Friday. Investors were keen to discern whether their remarks would align with their colleagues' cautious stance, emphasizing the need for clear signs of cooling inflation before considering any rate cuts.

Market Movers: Reddit Soars, GameStop Plunges

Reddit (RDDT) shares surged 15% after market opening, nearing its highest close of $65.11 achieved in March. The social media company announced a partnership with OpenAI, integrating ChatGPT with Reddit's content to enhance its platform.

Conversely, GameStop (GME) shares plummeted over 20% following the retailer's projection of a decline in first-quarter sales as consumers increasingly turn to online shopping. Despite a brief rally at the start of the week reminiscent of the 2021 meme stock craze, GameStop's stock has faced a downward trend in recent days.

Wall Street Awaits Key Fed Insights

Major indexes showed little movement at the start of Friday's session, with Wall Street watching closely for the Dow's next attempt to surpass the significant 40,000 milestone.

The Dow Jones Industrial Average (^DJI) held its position after reaching the milestone on Thursday. The S&P 500 (^GSPC) and the Nasdaq Composite (^IXIC) both recorded modest gains of 0.1%, positioning themselves for a positive weekly close.

Reddit's Pre-Market Surge on OpenAI Collaboration

Reddit (RDDT) shares climbed 14% in pre-market trading following the announcement of a new collaboration with OpenAI. This deal allows OpenAI access to Reddit's data to further develop its models. Reddit's co-founder and CEO, Steve Huffman, hinted at more such partnerships in the future as part of the platform's strategic reinvention, following a similar agreement with Alphabet (GOOGL).

Also Read: Stock Futures Steady Ahead of U.S. Inflation Report: Market Overview