Good morning and welcome to the stock market today! Investors are kicking off a short trading week, and r/WallStreetBets is back in the spotlight. So what else do you need to know? And what will the stock market do today?

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• The S&P 500 is up 0.09%
• The Dow Jones Industrial Average is up 0.24%
• The Nasdaq Composite is down 0.13%

So what will the stock market do today? Here are some of the top stories.

What Will the Stock Market Do Today? Share Memes.

Meme stocks are racing back into favor, with r/WallStreetBets leading the way.

Starting last week, the subreddit began its shift from names like Virgin Galactic (NYSE:SPCE) to AMC Entertainment (NYSE:AMC) and GameStop (NYSE:GME). Talk of further short squeezes picked up steam, thanks to cryptic messages from company executives and steady short interest. Also helping matters was a plan from GameStop to launch non-fungible tokens, perhaps a first step in its tech-centric turnaround plan. For retail investors, it became clear that these meme stocks had further upside potential.

That narrative continued through the weekend. AMC shares are kicking off the trading week, up 15%. This comes as the movie theater operator announced a sale for $230 million, giving it the cash it needs to play defensive and leverage the American reopening story. GameStop, Sundial (NASDAQ:SNDL) and BlackBerry (NYSE:BB) are following their new leader higher.

So what do investors need to know?

Cryptocurrencies have been cooling off, with many experts calling for further losses in June. Redditors have been quick to fill in the gap, chasing opportunity again with short-squeeze plays. Chatter on r/WallStreetBets and stock-specific subreddits quickly pivoted in favor of meme stocks. Plus, sentiment on discussion sites like Stocktwits skews incredibly positive. For AMC stock alone, nearly 96% of messages are flagged as bullish.

Hot vax summer is upon us, and investors are ready to have some fun. For now at least, that fun can be better found in AMC and GME, instead of altcoins named after bodily fluids.

The Worst Month Since 2011?

As meme stocks start driving the retail story, what is happening with cryptocurrencies?

Although a frenzy in altcoins continues, crypto prices have had a tough few weeks. Talk of further regulations in the United States and China, including a crackdown on Chinese miners, have weighed on sentiment. Elon Musk sent the whole market into turmoil when he criticized the high energy consumption associated with Bitcoin (CCC:BTC-USD) transactions and mining. Although he has since taken steps to alleviate the pain, crypto prices have not fully recovered. In fact, Bitcoin is currently trading hands for less than $37,000, a far cry from its all-time highs above $60,000.

Over the weekend, JPMorgan Chase analysts warned that more losses were ahead for cryptocurrencies. CEO Jamie Dimon also shared that he had personal beef with digital currencies, citing their risky nature and the need for increased regulation. Although his views will not influence how the bank proceeds, he does carry influence on Wall Street.

Robert Kiyosaki, author of Rich Dad, Poor Dad, agrees with JPMorgan analysts. As the cryptocurrency market closes in on what could be its worst month since 2011, Kiyosaki sees more pain ahead. However, he thinks that is a good thing for investors.

Bitcoin crashing. Great news. When price hits $27,000 I may start buying again. Lot will depend upon global-macro environment. Remember the problem is not gold, silver, or Bitcoin. Problem are the incompetents in government, Fed & Wall Street. Remember gold was $300 in 2000.

— therealkiyosaki (@theRealKiyosaki) May 30, 2021

In fact, Kiyosaki thinks it is a great thing! He says that recent losses have created a buying opportunity, and that he will personally be adding to his position if BTC prices touch $27,000.

Shot Girl Summer Meets Inflation

On Friday, InvestorPlace Assistant News Writer Brenden Rearick wrote that investors are shrugging off inflationary fears, even as consumer prices on goods like ground beef and hot dogs climb. His reasoning? Instead of worrying about shortages or rising prices, many in the market are looking ahead to Covid-19 recovery and better corporate performances.

Not everyone is so convinced.

Writing for Yahoo Finance, Sam Ro wrote this morning that consumer confidence and rising prices are colliding in a meaningful way. The result is an overall hit to market sentiment.

The personal consumption expenditure (PCE) price index gained 3.6% year-over-year in April. As Ro highlighted, excluding food and energy, the index was still up 3.1%. That is the biggest jump since 1992. Largely, investors were able to put this increase in context. As the country continues to reopen, supply chains are facing disruptions and prices are adjusting to account for shifts in supply and demand. That means that much of the increase is a result of one-time factors — not a broader inflationary narrative.

However, the April report is having a real (negative) impact on sentiment. Investors also learned last week that the Consumer Confidence Index declined slightly in May, as their expectations for income dipped slightly. A possible reason for this is rising expectations of inflation.

So what is the bottom line? As Rearick highlighted, there is a push and pull present with reopening hopes and inflationary fears. No matter how everything unfolds, it seems investors should be prepared for at least a short-term boost in consumer prices that will weigh on the market.

On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.