The Dow continued to rebound. It rallied more than 200 points, rising for a fourth straight day as investors watched the US earnings and stimulus measures.
As of 22.38 hours, the Dow Jones Industrial Average stood at 30,955.94 points, positive 231.33 points, or 0.75%.
Investors began to loosen their concerns about the GameStop phenomenon resulting in the CBOE Volatility Index (VIX), a measure of market investor anxiety. It fell to 22.9 yesterday after crashing above 30 on Friday.
Apple shares jumped 1.5% after news that Apple is close to reaching an agreement with Hyundai and Kia Motors to produce the “Apple Cars”, an autonomous electric vehicle. At the Kia factory Motors in Georgia, USA
The market gained positive results from lower-than-expected number of unemployment applicants last week.
The US Department of Labor released its first jobless benefits applicant at 779,000 last week. That was the lowest level since the week ended Nov. 28, 2020, and below analysts’ estimate of 830,000 from the 812,000 reported earlier this week.
In addition, the number of Americans continuing to apply for unemployment benefits fell 193,000 to 4.6 million after reaching 24.9 million in early May 2020. Which was affected by the lockdown measure Which resulted in the closure of the economy And lay off many employees
The market was also driven by progress in US economic stimulus measures. As President Joe Biden met with members of Congress. Hoping to push such measures to pass parliamentary approval. Despite protests from Republicans over the $ 1.9 trillion limit.
Meanwhile, investors keep an eye on US Treasury Secretary Janet Yellen. Which will hold a meeting with the financial regulator today To discuss volatility in the stock market caused by retail investors churning out the price of GameStop and other companies’ shares.
Mrs. Yellen will invite senior officials of the Securities and Exchange Commission, the Federal Reserve (Fed), and the New York branch of the Federal Reserve Bank. And the Commodity Futures Trading Commission (CFTC) attended today’s meeting.
Mrs. Yellen decided to hold the meeting. After the share price of GameStop, the famous US video game store, soared 1,625% in January due to small investors in the room. WallStreetBets With more than 7.6 million members on the Reddit forum, it aims to push the stock price higher in order 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 jumped 400 percent last week. As a result, the hedge fund suffered heavy losses. It is expected to be as high as 19,000 million dollars or about 570,000 million baht.
However, GameStop’s share price plunged 60 percent to $ 90 at the close of Tuesday. After a 30% drop on Monday. As a result, the stock price has plunged more than 70% since last Friday.
Many are concerned that if GameStop stocks continue to rise. It will cause hedge funds to sell other stocks in the market to raise money to compensate for the speculative losses on GameStop.
The GameStop phenomenon also signals a market bubble. Which if the bubble burst Will create a panic And severely impacted retail investors
Meanwhile, the volatility in the market due to GameStop shares prompted the US House of Representatives Financial Services Commission to hold a hearing on Feb. 18.
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