Meme stocks generating retail interest once more: report

Meme stocks like Bed Bath & Beyond and AMC Entertainment Holdings are seeing renewed interest from retail investors in the US, as retail investors head back to the markets. NASDAQ gained for the fourth consecutive session, as stocks gained over pared-down fears of an inflation-related slowdown. The S&P 500 has also gone up by 12.58 percent over the past month following the actions taken by the Federal Reserve to ease inflation fears.

“We are not arguing that the market will make new highs this year (we are more in the trading range camp), but we would not be surprised to see a run toward the highs as inflation eases and the Fed slows the pace of rate hikes,” Michael Darda, chief economist and market strategist at MKM Partners, said in a note.

With more confidence in markets, retail investors purchased an average of $1.35 billion daily of US stocks and exchange-traded funds in August alone, as reported by the Wall Street Journal. Among the favourites for retail investors has been ETFs like SPDR S&P 500, the Invesco QQQ Trust, ProShares UltraPro QQQ and the ProShares UltraPro Short QQQ as well as tech company stocks like Tesla, AMD, Apple, Meta, Nvidia, Amazon, and Intel.