AMC plunged 41%, silver gifts were in place in one day… New York Stock Markets Are Up
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The’ant (individual investor) rebellion’ in the United States is truly entering a phase.
Starting with GameStop, a video game distribution chain, the products that individual investors have targeted as intensive purchases have all turned to a sharp decline.
On the 2nd (local time) in the New York Stock Market, GameStop shares closed at $90.00, down 60% from the battlefield.
After a sharp drop of 30.8% the day before, it fell sharply two days in a row this week.
Gamestop shares, which soared more than 400% last week and more than 1,600% in January as a whole, fell more than 70% in two days into February.
In particular, although Robin Hood, a free securities app, raised the limit on purchases of individual investors in GameStop stocks to 100 shares, the trading restrictions were significantly relaxed, but the buying trend did not recover.
In the meantime, individual investors who have united around the online community Reddit’s’Wall Street Betz’ have been protesting against hedge funds that openly short-sell certain stocks, such as Gamestop, in reverse to buy the stock and raise the price.
As a result, some hedge funds, driven by a’short squeeze’ (a situation in which short-selling investors have to buy the product or stock to reduce their losses), suffered a big loss and had to surrender to the ants.
Individual investors engaged in collective action through Reddit expanded to not only GameStop, but also other stocks such as movie theater chain AMC Entertainment, Blackberry, and even the silver market.
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However, in the stock market on this day, not only Gamestop, but also AMC and Blackberry plunged 41.2% and 21.1%, respectively, showing a different pattern from last week.
Silver futures for March also surged 9% the day before, plunging 10.3% in one day after reaching the highest level in eight years.
As the rebellion of the ants truly took off, the loss of the GameStop short-selling force fell sharply from $20 billion last week to $13.4 billion on that day, according to S3 Partners, a financial information analysis company.
The New York Stock Market as a whole seems to recover as the overheating of several stocks cools.
The Dow Jones 30 Industrial Average rose 475.57 points (1.57%) to 30,687.48, the Standard & Poor’s 500 index rose 52.45 points (1.39%) to 3,826.31, and the Nasdaq index rose 209.38 points (1.56%) to 13,612.78. Each closed the chapter.
Gamestop stock prices and the flows of the three indexes have been reversed for several days.
As the speculation fever of individual investors focused on several stocks fades, other investors who have been watching have regained confidence and the overall health of the market has improved, CNBC analyzed.
“Reddit’s rocket ship is running out of fuel and is crashing back to the ground,” said Max Cochman, head of asset allocation at Pacific Life Fund Advisor. “As soon as we witnessed that gravity is still working and fundamentals are important, other market participants feel relieved. It seems to be leading the’comeback rally’ back to the stock market.
However, there are also observations that investors who have imprinted their presence through the GameStop incident can always show collective strength through other occasions.
“Individual investors have become a force that cannot be ignored,” said New York Life Investment’s economist Lauren Goodwin. “Their influence will subside over time and become stronger again.”
A famous Wall Streetbets member even revealed on a bulletin board that despite a two-day plunge, he still owns GameStop shares.
/yunhap news
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