A comment page for Keith Gill, a Reddit user credited with inspiring GameStop's rally, before a YouTube live stream held on a laptop at the New York Stock Exchange on June 7, 2024.
Michael Nagel | Bloomberg | Getty Images
Cryptocurrency trading is skyrocketing. Roaring Kitty boosts meme stocks. The broader market is not counting on any clear catalysts.
Animal spirits are on the loose at the dawn of 2025 trading.
Several pockets of stock market speculation rose on Thursday, the first session of the new year, right after the S&P 500 closed out its best two years since 1998.
Stocks linked to the price of Bitcoin jumped as the cryptocurrency rose again to more than $96,000. Microstrategy added 3.6% after rising more than 360% in 2024. Cryptocurrency-related companies Coinbase, Robinhood, Mara Holding and Riot pads It was also trading higher after a big 2024. A crypto token called “fartcoin” has surged in value by 45% and now has a market capitalization of $1.38 billion.
Elsewhere, retailers active on social media were busy playing a guessing game after online personality Roaring Kitty posted a cryptic GIF on X including a “Chappelle's Show” sketch in which comedian Dave Chappelle plays the late funk musician Rick James.
One of James' songs is titled “Unity,” and some believe the meme leader, also known as Keith Gill, was referring to Unit programmeswhose shares rose by 9.1%. Others thought he was back promoting his original favorite GameStopwhose shares also received an offer.
Meanwhile, semiconductor stocks — big winners in 2024 — helped lead the market again after the AI trade lost some momentum at the end of last year. Nvidia It rose 3% on Thursday.
Furthermore, Topgolf Callaway Brands shares rose 14.5% on the back of an upgrade in Jefferies to buy from hold. The investment bank said the golf equipment maker's shares appear to be oversold and raised its price target to 65% above the price at which the name ended the year.
With market speculation on the rise, broad stock indices rose briefly at the start of 2025. The Dow Jones Industrial Average advanced as much as 300 points before losing momentum to close the day lower.
Thursday's dramatic moves resemble primary rallies on the back of Donald Trump's election victory in November, with investors betting that his pro-business policies will propel companies and the economy into strong growth. These gains slowed toward the end of 2024 as concerns grew that the president-elect's protectionist policies could spark inflation or disrupt supply chains, and with the Federal Reserve signaling smaller interest rate cuts in 2025.
“Many investors assume that the next administration’s push for deregulation will unleash animal instincts,” Lisa Shalit, chief investment officer at Morgan Stanley Wealth Management, said in a recent note to clients. “But what if it will only accelerate the concentration of monopoly power in the hands of a few people, weakening the effectiveness of broad economic measures and leaving behind larger segments of the population?”
Correction: Online personality Roaring Kitty posted a GIF on X that included a “Chappelle's Show” sketch in which comedian Dave Chappelle plays the late funk musician Rick James. A previous version misstated the details of the post.
