The Dow Jones Futures rallied more than 200, indicating that Wall Street’s stock markets will rebound tonight. Investors forecast strong Amazon and Alphabet results to be released today. As well as keep an eye on the progress of issuing US economic stimulus measures
The market was also boosted by a drop in GameStop’s share price. After having soared much earlier And create volatility in the market
At 7:13 p.m. Thai time, the Dow Jones futures positive 222 points, or 0.74%, to 30,332 points.
Amazon and Alphabet stock prices jumped more than 1% in early trading today. Both companies will report results in 4Q20 after the market close today.
Among the companies in the S&P 500 that posted 4Q20 results, 84% reported higher-than-expected revenue and profit figures.
The President Joe. Biden met with Republicans at the White House yesterday to discuss the imposition of U.S. economic stimulus measures. It is likely that he will try to push the measures. Despite protests over $ 1.9 trillion from members of Congress, both Republicans and Democrats.
CBOE Volatility Index or CBOE Volatility Index (VIX), a measure of market investor anxiety. Tumbled to the lowest level in one week today. After investors began to dismiss concerns about the volatility in the market caused by the rise of GameStop shares.
The share price of GameStop, a famous video game store in the United States. Continually falling It plunged more than 30% to $ 158 in trading before the New York Stock Exchange today. After closing, the market slipped 30.77% last night.
If GameStop’s share price opened at $ 158 today. It would cause the stock to plummet 60% in just two days after the previous big jump.
The plunge in GameStop’s share price came as a group of retail investors on Wall Street turned their target to silver to push the price up. After adopting a similar strategy to GameStop stocks to preach the big hedge funds that are often speculated by short selling in the market.
Small investors flock to buy silver. As a result, silver contract prices rose above 30 dollars yesterday. Reaching the highest level in 8 years
GameStop’s share price jumped 400 percent last week and soared 1,625 percent in January, driven by retail investors in the room. WallStreetBets With more than 7.6 million members on the Reddit forum, it aims to push GameStop’s share price higher to pressure the hedge fund to buy back the stock to cut losses. After it had been selling short before, it was speculated that GameStop would soon shut down.
GameStop’s share price spike resulted in heavy hedge funds. It is expected to be as high as 19,000 million dollars or about 570,000 million baht.
If GameStop shares continue to rise It will cause hedge funds to sell other stocks in the market to raise money to offset the speculative losses of GameStop.
There are also concerns that the GameStop phenomenon signals a market bubble. Which if the bubble burst Will create a panic And severely impacted retail investors
The volatility seen in the market as a rise in GameStop shares prompted the US House of Representatives Financial Services Commission to hold a hearing on market volatility related to the spinning GameStop and others. The hearing will take place Feb. 18 as President Joe Biden’s economic team, including US Treasury Secretary Janet Yellen, will Are also keeping a close eye on the volatility in the US stock market.
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