24-07-2025
So far the meme rally is tame and that's good for the market
Bursts of speculative rallies in meme stocks have been largely held in check, making some believe the trading frenzy won't derail the overall market that's back at a record. Shares of Opendoor jumped about 7% in premarket trading Thursday after two days of retreat. The real estate startup gained sudden fandom among retail traders, pushing the stock up more than 300% this month. Other meme names that had been active were relatively tame. Wearable camera firm GoPro , doughnut maker Krispy Kreme and Kohl's all traded slightly lower Thursday. American Eagle Outfitters seems to be catching the meme wave , with shares skyrocketing 13% after the company unveiled a campaign with Sydney Sweeney. "The combination of the Momentum Unwind and Meme Mania 2.0 are reducing (eliminating?) people's ability to hold alpha shorts. Combine that with positive comments on M & A pipeline and the impending buyback bid and the storm clouds appear to be lifting ahead of the previously feared Aug 1 deadline," JPMorgan's trading desk said in a note to clients. "Now, if that US / EU hits the tape, we get a deal from China next week, and the macro data holds up and look for this market to take a significant step higher," it added. The heightened speculative activity on Wall Street coincided with a relief rally in the broader market amid better-than-feared tariff headlines. The S & P 500 closed at another record high Wednesday, bringing its 2025 gains to more than 8%. "At some point this steady stream of optimism likely will cause sentiment to jump to speculative levels which would warn of a selloff as nearly 80% of US companies have beaten 2Q earnings thus far and Meme stocks have been making a comeback," Mark Newton, head of technical strategy at Fundstrat, said in a note.
