With just a single tweet that is not even related to stock, Gamestop and AMC shares closed 80% higher on Monday, reigniting the meme stock frenzy of 2021. It was attributed to the re-emergence of Keith Gill, also known as RoaringKitty on X and DeepF***ingValue on Reddit, who posted cryptic images and GIFs on social media after a three-year hiatus, despite not mentioning Gamestop directly. Gill's infamous Reddit posts about Gamestop's potential and the excessive short positions against the stock sparked a retail buying frenzy in 2021, leading to a gamma squeeze in Gamestop, AMC, and other heavily shorted companies, erasing billions from shorts like Melvin Capital. The rally had little impact on the broader market, as investors focused on the upcoming inflation data and its implications for interest rates.


Wall Street remained relatively flat on Monday, although Dow Jones snapped an eight-day winning streak. This week's calendar is packed with significant events, including the release of Chinese retail sales data, comments from Fed Chair Jerome Powell, and earnings reports from major U.S. retailers like Walmart and Home Depot. Investors are particularly interested in tracking the impact of inflation on consumer spending and corporate profitability.


Gold prices modest on Tuesday as investors shifted their focus to the upcoming U.S. inflation reports due this week. These reports are expected to provide insights into the Federal Reserve's future monetary policy decisions. The market anticipates that the Fed will likely cut interest rates twice this year, starting in September. Additionally, U.S. payrolls report for April and a weak jobs report last week might support this narrative.


Oil started the week with a bang, with prices recovering about half of last Friday's drop. Operational disruptions, stronger demand, and voluntary output cuts by OPEC+ members are attributed to the price movement. The wildfire situation in western Canada has also raised concerns about disruptions to the country's oil production capacity. China's consumer price data points towards improving demand, while Iraq's oil minister initially gave support for continued OPEC+ output cuts.


The dollar remained steady in the Asian session after closing slightly higher ahead of inflation data scheduled for release later this week. The Japanese yen was also in focus, with traders concerned about additional intervention if the yen continues to fall against the dollar. The Chinese yuan inched lower due to concerns surrounding the property market, as another major property developer defaulted on its bond payments.