Crypto trades are surging, with Roaring Kitty boosting meme stocks and the broader market rallying without any clear catalysts. Animal spirits are running wild as 2025 trading begins.
On the first trading day of the new year, various speculative areas of the stock market experienced significant gains following the S&P 500’s strongest two-year performance since 1998. Stocks linked to bitcoin’s price rose alongside the cryptocurrency’s climb above $96,000. Companies like Microstrategy, Coinbase, Robinhood, Mara Holdings, and Riot Platforms saw increases after a successful 2024. A crypto token named “fartcoin” surged by 45%, reaching a market value of $1.38 billion.
Retail traders active on social media engaged in speculation after Roaring Kitty shared a cryptic gif featuring a “Chappelle’s Show” sketch with comedian Dave Chappelle portraying Rick James. Some interpreted this as a reference to Unity Software, leading to a 9.1% surge in its stock, while others believed it signaled a return to GameStop, which also saw increased trading activity.
Semiconductor stocks, which were strong performers in 2024, continued to lead the market after a slowdown in the artificial intelligence sector at the end of the previous year. Nvidia gained 3% on Thursday.
Topgolf Callaway Brands, a golf stock, surged by 14.5% following an upgrade by Jefferies from hold to buy. The investment bank noted that the golf equipment maker’s shares appeared oversold and raised its price target significantly.
Amid increased market speculation, major stock indexes briefly rose at the start of 2025. The Dow Industrial Average initially advanced by up to 300 points but later closed lower after losing momentum.
The market movements on Thursday were reminiscent of the initial rallies seen after Donald Trump’s election victory in November, driven by expectations of pro-business policies. However, concerns arose toward the end of 2024 regarding potential inflation and supply chain disruptions due to the president-elect’s protectionist stance, coupled with signals from the Federal Reserve of fewer interest rate cuts in 2025.
Lisa Shalett, chief investment officer of Morgan Stanley Wealth Management, highlighted the potential consequences of the new administration’s deregulation efforts, cautioning that it could concentrate monopoly power and limit the effectiveness of broad economic measures, potentially leaving large segments of the population behind.
Correction: Roaring Kitty posted a gif on X featuring a “Chappelle’s Show” sketch with Dave Chappelle as Rick James. An earlier version contained inaccuracies regarding the post.
