Crypto stocks surge, prompting market speculation and a 'Roaring Kitty' guessing game in 2025.

Meme stocks are surging, driven by the popularity of the Roaring Kitty meme, while the broader market is experiencing significant gains with no clear catalysts.

Animal spirits are on the run at the dawn of 2025 trading.

The stock market saw many speculative pockets surge in early trading on the first day of the new year, following the S&P 500's two-year run since 1998.

The price of bitcoin surpassed $96,000, causing stocks linked to it to rise. Microstrategy gained 4% premarket after experiencing a 360% increase in 2024. Crypto-related companies such as Coinbase, Robinhood, and also saw their stocks trade higher following a successful 2024.

Retail traders on social media were engaged in a guessing game after Roaring Kitty posted another cryptic message on X, referring to either or , whose stock prices increased by 10% and 5%, respectively, in premarket.

The semiconductor stocks that were predicted to be the big winners in 2024 helped lead the market again after the artificial intelligence trade lost some momentum at the end of last year. On Thursday, both and jumped in value, with gaining 1.6% and jumping 2%.

Golf equipment maker Callaway Brands experienced an 8.5% increase in stock price after Jefferies upgraded its recommendation from hold to buy. The investment bank believed the shares were oversold and raised its price target to 65% above the year-end closing price.

As market speculation increased, broad stock futures rose to begin 2025. Dow futures advanced by 300 points, while S&P 500 futures added 0.8% and Nasdaq-100 futures rose 1%.

The dramatic moves on Thursday echoed the initial rallies following Donald Trump's election victory in November, as investors believed his pro-business policies would stimulate companies and the economy to robust growth. However, these gains dwindled towards the end of 2024 as fears arose that the president-elect's protectionist policies could cause inflation or disrupt supply chains. Additionally, the Federal Reserve indicated that it would not provide as many interest rate cuts in 2025 as initially anticipated.

"Lisa Shalett, chief investment officer of Morgan Stanley Wealth Management, stated in a recent note to clients that many investors believe the incoming administration's push for deregulation will stimulate economic growth, commonly referred to as "animal spirits." However, she posed a question: what if this push only strengthens the dominance of a few large corporations, diminishing the effectiveness of broad economic policies and leaving behind even more marginalized groups?"